Shell under fire from fuel companies taking extra £1bn from soaring petrol prices
Shell has suffered a backlash from fuel companies after it revealed it could stand to receive up to £1bn of extra cash from a sharp rise in petrol prices.
Profits at the FTSE100 energy company, which refines crude oil into various petroleum products such as motor fuel, are expected to rise by £667m to £1bn in the second quarter of 2022 compared with the first.
The increase was driven by a huge increase in the division’s profitability, which more than doubled to £23.37 a barrel of oil from £8.53 in the first quarter of the year.
Shell’s refining business, which turns crude oil into various petroleum products such as motor fuel, is expected to grow by £667m to £1bn in the second quarter of 2022.
A shell actions in response rose 3 percent, or 59.3 pence, to 2,033.5 pence. But fuel campaigners and motoring groups have condemned the revelation as Shell and other energy companies face accusations of making huge profits at the expense of consumers suffering from rising petrol prices and fuel bills.
“The foul stench of speculation is rearing its ugly head again,” said Howard Cox, founder of FairFuelUK.
“There is no doubt that fraudulent pump prices are controlled by businesses higher up the fuel supply chain, and it is the infrastructure of the big oil companies that is the mastermind behind it.”
Jack Cousens, the AA’s head of road policy, said further oil company profits would leave a “bad taste” in the mouths of motorists.
The surge in Shell’s earnings came as UK petrol prices hit a record high of 191.53p a liter over the weekend, further putting pressure on motorists.
The war in Ukraine has led to a sharp rise in the prices of crude oil and natural gas