Shell and BP reveal record profits of £7.2 billion

  donki 14:02 30 Apr 2008

How can this be fair on public? The £7.2 billion are profits for the first 3 months of this year. Are we being extorted? Why cant the government tax these companies more instead of taxing the the end buyer.

Its fair enough to say we are using to much of the world resources but some people need to travel and companies need fuel for example haulage companies. I for one have started traveling by train to work (its not that much cheaper than takign the car but its not so much hassle) i do however have to travel 6 miles to the train station.

Articale below.

click here

  JanetO 14:26 30 Apr 2008

It may seem unfair, but in reality the profits the greedy buggers make isn't from forecourt sales. It's mostly from other sources.

If you understand that a barrel of oil has gone up in one year by 80% - that's EIGHTY PERCENT - you can better realise the problem. Added to that the tax levied on petrol/diesel is the highest in Europe, if not the world.

I'd suggest to the powers-that-be to invest heavily in alternative forms of vehicle propulsion. And soon.

  donki 16:28 30 Apr 2008

Would it be possible to see how much profit the companies make on fuel from the forcourt?

fourm member
I can see your point on the pension front, thats in a bad enough situation with out another knock.

  Kemistri 16:36 30 Apr 2008

Another example of media outlets overlooking the finer points of economic reality to appeal to the average financially over-burdened man on the street with attention-grabbing headline figures. The pre-duty prices at the pumps have not risen by the same percentage as bulk oil prices. Most petrol stations are supported to a very large extent by their shops because (up to the last figures that I saw in March) the average margin on the fuel was less than 3p per litre. That assumes that we all pay be cash, which of course we don't, so any small fill-ups made with a card can result in that margin being wiped out by the additional merchant charges. So it is not the fault of the petroleum companies that we pay nearly £1.10 per litre (in my locale) -- if they priced it any cheaper, they would be subsidising our driving. We all know exactly whose fault it is, but of course, therein lies whole other economic mire of problems.

  interzone55 17:19 30 Apr 2008

This link is a couple of years old, but it gives you an idea of the way the price of a litre of fuel is broken down...

click here

  Woolwell 17:34 30 Apr 2008

This more up to date click here
Note tax in its varying shapes eats up 61%.

  rawprawn 17:40 30 Apr 2008

The excessive profits being made at the moment are mostly due to the rise in price of a barrel of oil quoted in US dollars.
The US dollar has fallen, demand has risen, hence the large profits. Not only by the Oil companies, but the Treasury cannot believe it's luck because each rise produces an increase in revenue.
It is about time that the Government acknowledged this "windfall" and cut their tax on fuel. Haulers, and we average motorists are paying the price because of lack of action by the Government who are treating this fluctuation as a "Cash Cow"

  Stuartli 17:52 30 Apr 2008

Selling petrol and diesel represents a tiny proportion overall of oil companies' profits - the rising price of crude oil accounts for much of it.

Blame the Government for high fuel prices; for doing absolutely nothing it taxes plus VAT's the stuff at a rate of about 80-85 per cent of the retail price.

Not only that, it also gathers taxes from the oil companies and petrol stations' profits, yet the latter receive no recompense whatsoever for acting as collectors of vast sums of taxes.

Oil companies also need what appear high profits to enable the prospecting and bringing to markets new sources of oil, with a lot of new fields proving far more difficult and expensive to work than current and previous examples.

  birdface 18:49 30 Apr 2008

I suppose motorists can show there disapproval by shopping elsewhere for there fuel.

  donki 19:30 30 Apr 2008

I can see the little profit they make thanks for the info guys. Nothing else for it but to keep forking out at the pump :(.

Why is diesel higher than petrol? Sorry for my lack of knowledge on the subject.

  interzone55 20:22 30 Apr 2008

And just where do you think you'll get fuel without passing the money in one shape or form to both the Government and Shell or BP?

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