Oil giant BP slammed over its huge profit

The British multinational oil and gas giant BP has reacted to claims it has profiteered from the global energy crisis by insisting it will pay a substantial amount of "windfall "tax on massive profits unveiled on Tuesday.

The London-headquartered "supermajor" oil company, which is one of the world's largest enterprises in terms of revenues and profits, made an $8.2-billion profit in the July-to-September quarter. The total was more than double the company's profit recorded for the same three-month period last year, and was largely down to the high price of oil and gas attributed to global shortages resulting from the Russia-Ukraine conflict.

The company insisted its profit, which was accumulated from its worldwide activities, means it will pay $800 million pounds in UK windfall taxes this year out of its total of $2.5 billion in UK taxes.

Critics have said that does not go far enough and that BP and other oil and gas giants should be paying more, so governments can help people struggling with record fuel bills, rampant inflation, and a cost-of-living crisis that has plunged many households into poverty.

The UK Conservative Party lawmaker Alok Sharma, who was president of the COP26 climate change gathering, said in a tweet: "We need to raise more money from a windfall tax on oil and gas companies and actively encourage them to invest in renewables."

Ed Miliband, the opposition Labour Party's climate change spokesperson, added: "Today's profits at BP are damning evidence of the failure of the government to levy a proper windfall tax."

Miliband said the government has effectively "left billions of windfall profits in the pockets of oil and gas companies, while the British people face a cost-of-living crisis".

The environmental group Friends of the Earth said in a statement: "The case for a bigger, bolder windfall tax is now overwhelming."

It was a call the BBC said the Treasury looks set to act upon, with the nation's windfall tax rules likely to be changed in the budget due on Nov 17, with extra money collected diverted to the nation's struggling public services.

BP's huge profit and windfall tax contribution was announced days after fellow oil giant Shell confirmed it had avoided paying any windfall tax in the UK after making a $9.5 billion profit in the third quarter.

Other major oil companies, including Exxon Mobil and Total, have also announced huge profits recently.

The Associated Press news agency said the situation prompted United States President Joe Biden to urge major oil companies on Monday to end their "war profiteering" or be hit with additional US taxes.

Sky News quoted Shell's CEO, Ben van Beurden, as saying it is clear governments will now take action because "a lot of people, particularly the most vulnerable" are struggling amid the cost-of-living crisis.