BP gains DOUBLED to £5bn as energy and petrol prices spark cost-of-living crisis

It comes amid a cost of living crisis that has left millions of households struggling to afford essentials like groceries and transport due to rising inflation

Oil giant BP’s profits more than doubled last year as household oil and gas prices soared.

The company today reported underlying earnings of $6.2 billion (£4.9 billion) compared to $2.6 billion in the same period last year – the highest in more than a decade.

BP said the surge was partly due to “exceptional oil and gas trading”.

This is despite a $24.4 billion loss on his decision to leave Russian energy giant Rosneft following Putin’s war on Ukraine.

“In a quarter marked by the tragic events in Ukraine and volatility in energy markets, BP focused on providing our customers with the reliable energy they need,” said BP CEO Bernard Looney.

The gains come amid a cost-of-living crisis that has prompted charities to warn households they are struggling to afford basic necessities like groceries and transport due to rising inflation.

The oil giant revealed plans to sell up to $18 billion by 2030

Economy Minister Kwasi Kwarteng wrote to the oil and gas industry last week, saying they must also lay out clean energy investment plans at a meeting in the coming weeks.

However, Labor backs calls for a corporate windfall tax to help more directly cash-strapped households and businesses.

The party has proposed a 10% increase in corporate tax paid by oil companies operating in the North Sea. This would be on top of the 40% rate they pay on their profits, which is already higher than the 19% corporate tax rate.

Chancellor Rishi Sunak seems to distance himself from such a tax, instead looking for companies making big profits to invest the money back in the UK.

To address this, alongside its quarterly results, BP has pledged to invest in oil and gas in the North Sea while reducing operational emissions, and said it is also working on a number of lower-carbon energy projects in the UK that are planned to create jobs and develop new skills.

It also continued to boost returns for investors on underlying earnings yield and announced a further £2bn in share buybacks.

Chief Executive Bernard Looney said: “In a quarter marked by the tragic events in Ukraine and volatility in energy markets, BP’s focus has been on providing our customers with the reliable energy they need.

“Our decision in February to exit our stake in Rosneft resulted in the significant non-cash charges and headline losses we reported today.

“But it hasn’t changed our strategy, our financial framework or our expectations for shareholder payouts.”

TUC General Secretary Frances O’Grady called for an emergency budget.

“At a time when households across the UK are being plagued by soaring bills and prices, these gains are obscene,” O’Grady said.

“The government must stop making excuses and impose an unexpected tax on oil and gas companies.

“The money raised should reduce costs for struggling families.

“The longer ministers delay taking action to address this living standards emergency, the more damage will be done.

“We need an emergency budget now.”

Secretary of State for International Trade Anne-Marie Trevelyan said BP’s profits would help the company in its clean energy transition.

She said the company has been one of the “leaders” in moving towards a cleaner future and therefore “they need profits to invest in the new energies of the future”.

She told BBC Breakfast: “BP’s profits will allow them to continue to deliver a huge clean energy transition programme.

“The reality is, if we take away their profits, we won’t be able to do what’s most important, [which] is to invest in the clean energies of the future, which will also enable us to break free from dependence on foreign energy.”