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SLASH PETROL BY 25P A LITRE - FURY OVER OIL GIANTS' PROFITS

PRICE SLASH: Petrol prices could be cut by 25p a litre

Wednesday July 30,2008

By Louise Barnett

Comment Speech Bubble Have your say(14)

PETROL could be slashed by 25 pence a litre as oil companies rake in colossal windfalls on the back of soaring oil prices.

Profit figures released by BP yesterday show that the oil giant has already made £6.75billion this year.

For the past three months, it has been making an astonishing £555 a second. One industry analyst said that BP’s profits were the equivalent of a 25 pence a litre cut in unleaded petrol prices for 404 days.

Other oil companies are expected to release similar profit results in the next few days, prompting demands for an immediate cut in forecourt prices – and for the Government to impose a one-off windfall tax to help hard-hit households cope with the credit crunch.

Why haven’t oil companies used the profits they are generating to bring the price down?

Roger King

The three-month income was 56 per cent more than the same period of 2007.

The calls were echoed by hundreds of thousands who backed a successful Daily Express crusade earlier this year for the Government to scrap a planned 2p rise in fuel duty proposed for October.

But research has shown that a fuel tax cut of 14p a litre could be supported by the Treasury’s own windfall from North Sea oil tax revenue – and the Daily Express crusade is continuing.

Last night BP was accused of “picking the pockets of the poor and needy” when millions of hard-pressed Britons are buckling under the rising cost of living.

Tony Woodley, joint leader of the Unite union, said: “While ordinary working people struggle to make ends meet, BP’s boardroom is wading through knee-deep profits.

“A windfall tax now would ensure the money was there to help the old and vulnerable through these tough times.

“Tax the fuel companies now so those who helped to create these mega-profits get their rightful share of them.”

Roger King, chief executive of the Road Haulage Association which represents 10,000 lorry firms, said: “Some of the profits they are generating could well go to improving diesel refining to get the price down.

“We have every right to be annoyed when we see these record profits and then look at the pump prices. Why haven’t oil companies used the profits they are generating to bring the price down?”

Friends of the Earth added to calls for a windfall tax on oil company profits. The green campaign group said the money should be ploughed into cutting domestic electricity and gas bills for households most in need.

Struggling motorists are now forking out 35 per cent more for diesel and 21 per cent more for unleaded than a year ago.

BP was urged to take the lead and help cash-strapped drivers. Louise Doherty, analyst at comparison site PETROLPRICES.COM, said the huge profit meant the company could afford to reduce pump prices.

She said: “£6.75billion should more than leave room for them to cut prices and ease the pain for motorists. BP are one of the chains who have pledged to cut their prices along with the supermarkets.

“But if they are still making £6.75billion then you can argue that they have still got room to cut a bit more.”

The oil giant raked in 23 per cent more than in the same six months last year because of soaring crude oil prices, which have more than doubled in the past year to hit a high of $147 a barrel.

Rival oil firm Shell is expected to announce its own massive profits later this week.

BP pointed out that its profits were a global figure and the bulk of its money is made from crude oil and gas exploration rather than petrol sales.

It also emphasised that it makes just a couple of pence a litre profit on British petrol and diesel sales.

Spokesman Mark Salt said: “We cannot cross-subsidise the fuel we sell to our service stations with profits from our other businesses.

“This would be anti-competitive and discriminatory against other retailers who do not have the ability to cross-subsidise, and therefore would not be allowed.”

The company said it paid £7.3billion in taxes worldwide last year – of which £1.17billion was in Britain. But Adrian Tink of the RAC said motorists would compare the vast profits to their own financial pain at the pumps.

“They are within their rights to ask what these companies are doing to ease the pressure on them,” he said.

Drivers have suffered a record run of petrol and diesel price rises. At their highest point earlier this month, unleaded surged to an average 119.70p a litre and diesel hit 133.25p.

But supermarkets last week sparked a price war which brought some relief. Prices yesterday dipped to an average 117.20p a litre for unleaded and 131.05p for diesel.

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25P - IT IS EASILY AFFORDABLE BY GOVERNMENT AND COMPANIES

30.07.08, 5:23pm

Working together for the common good is what is needed right now, reducing the profits of both left and right wing extremists to help reduce our cost of living would show that we are being listened to. We are subject to super taxes and super profit margins that have no benefit for any of the population at large. Just taking advantage of the popular theme of global warming shows that there may be a combination of ideals designed to fool us.(we who live on an island cut off from every where)

One way of keeping us isolated is to ridicule the Internet and try to shut it down so that we can be lied to about what other countries are doing to help their population in this world? crisis. Our continental and world rivals seem to be doing all they can to help their people get on better despite what appears to be a news blockade being run in this country. The truth cannot be hidden behind this type of scam any more, we are not the electorate of old who believed in the Unions or Maggie, we now question old fashioned rubbishing tactics put out by both sides and we want an end to them. Perhaps everyone who knows this is wanting to get rid of left wing Brown and his union supporters and then take on the 1922 committee because neither group is worth listening to any more. They have created many of the problems in this country by their constant feuding over who is right.

FOOTNOTE

WE HAVE NOTICED THE POSSIBLE COLUSION BETWEEN SIR RICHARD AND BROWN, WE ARE NOT STUPID !!!!!

• Posted by: albertthedog • Report Comment

SLASH PETROL BY 25P A LITRE - FURY OVER OIL GIANTS' PROFITS

30.07.08, 4:43pm

How about taking some personal responsibility. I see able-bodied people driving their overweight kids round the corner to school or going to the local supermarket when they could walk or bike it. Plus plenty of people speeding on the roads when lifting their foot would improve their fuel consumption. And reduce petrol prices? Never heard of global warming Daily Express? I have a suggestion, save money by not buying this rubbish paper!

• Posted by: Mickey310167 • Report Comment

SO WHAT THE OIL COMPANIES HAVE MADE BIG PROFITS.

30.07.08, 4:08pm

The oil companies have made big profits but what about the UK government? They make more money than the oil companies do and they don't have to do any of the work. I understand that the profits the companies have made will be seen by some as greed but lets put it like this. 60% of the money paid for petrol, per litre, by one person is made up of tax. That means if petrol cost £1 per litre at the pump then from that 60p is tax, leaving the other 40p for the petrol companies. Doesn't sound like a lot for a greedy petrol company now does it?
The fact is, if the petrol companies shaved 12p per litre off the price of fuel then the government should shave off 12p -14p too. Bring the costs of fuel for both vehicles and homes down by reducing the tax burden on everyone and then we would have happier people and then Labour may have redeemed some faith in the people.

• Posted by: Chomerly • Report Comment

WINDFALL PROFITS

30.07.08, 3:48pm

The government are forecast to receive a windfall of some £15 billion on the back of the current oil prices.
For this they have done absolutely nothing in terms of taking any risk or making any investment. While the oil companies are making record profits they have had to do some work for the return.
When Gordon et al say they feel our pain they are laughing behind their hands. Why should the government have the slightest interest in oil coming down in price? The Treasury merely collects the extra revenue.

I am not defending the oil companies, merely pointing out that the government are profiiting as much if not more than the oil companies and neither the government or any MPs are suggesting that this windfall should br returned to the customers or taxpayers.

• Posted by: freddie • Report Comment

SLASH PETROL BY 25P A LITRE- FURY OVER OIL GIANTS PROFITS.

30.07.08, 2:37pm

Wonder what the Eskimos think of this ?

• Posted by: juan01 • Report Comment

ONE QUESTION

30.07.08, 1:55pm

I'm not sure if this was addressed anywhere but is this article about profits or profit margin? Big difference between the two. From what I saw in the article it's only talking about profits. If the companies overhead increased by the same amount, they they aren't making any more money than in years past. This article is misleading then and gets everyone's thongs in a bunch for nothing.

• Posted by: caambers • Report Comment