Calls for windfall tax as Shell make massive profits amid energy price hike
A North East MSP has joined the calls for oil and gas firms to pay a 'windfall tax' as energy prices go up, meanwhile Shell record massive profits
Last updated 3rd Feb 2022
A North East MSP has called for a one off windfall tax to be applied to oil and gas firms.
It comes as Ofgem announce they'll be increasing the price cap for customers by ÂŁ693 a year.
But whilst that cost for the customer goes up, caused by the soaring prices of wholesale gas, some firms are still making massive profits.
It has been revealed that Shell have made a pre-tax profit of over 16bn US dollars in the last quarter of 2021.
That'll mean the global firm will hand out ÂŁ6bn to shareholders.
Mercedes Villalba, a North East MSP who represents the Labour party is now calling on companies like Shell to be taxed on that cash.
"Scottish Labour is calling for a one off windfall tax on the increased profits that oil and gas companies would be seeing.
"That would be redirected and used for households that are in financial difficulty to help them meet the costs of their energy bills.
"At the same time UK Labour is calling on the UK Government to cut VAT on home energy bills.
"I think it's pretty outrageous that anyone is profiting from the hardship of others."
The call is also being backed by Labour's Jenny Laing, the Council Leader in Aberdeen.
She told Northsound News:
"In Aberdeen we obviously have hosted the oil and gas industry for the last 50 years, and I value the partnership working that we have with that industry.
"However, I think we are seeing large profits by certain companies and the call for a one off windfall tax in relation to those profits, I think is reasonable."
Shell Chief executive Ben van Beurden said: "We delivered a very strong financial performance in 2021, and our financial strength and discipline underpin the transformation of our company.
"We have a compelling strategy, with customers at its core. We have ambitious plans to generate shareholder value, to decarbonise our products and to provide energy to our customers while respecting nature."
He doesn't agree firms like Shell should being paying out more tax though, saying:
"It is a concerning picture and we completely understand that, but of course this is driven very much by a global dynamic.
"I am not convinced that windfall taxes, popular as that might seem, is going to help us with supply, nor is it going to help us with demand."