Energy giant Shell profits skyrocketed in third quarter, sparks calls for windfall tax rise

British oil and gas company Shell has reported its second-highest quarterly profits between July to September. The multinational corporation recorded a profit of $9.5 billion, as against the $4.2 billion it recorded in the same period last year. The high profits have prompted rising demand for higher taxes on the profits racked by energy companies.

The ongoing Russia-Ukraine war has caused a Europe-wide energy crisis, raising prices of commodities to stupendous highs. As the winter approaches, the crisis is likely to deepen, pushing the prices further up, which will be challenging for all governments. To put the crisis in perspective, the industrial energy crisis in Italy skyrocketed from €8 billion to €100 billion, putting thousands of businesses and households at risk.




Oil and gas prices went up soon after countries opened up the pandemic restrictions. Following the Russian invasion of Ukraine, prices have gone further up as countries opt out of buying commodities from Russia. However, Russia being the biggest supplier of energy fuel to Europe, the import withdrawals have turned out to be a monumental challenge.

Major oil and gas corporations like Shell have emerged as the biggest beneficiaries of the rising prices. While households are battling financial crisis-like inflation, the profit figures for global companies continue to fatten. Hence, the demand to increase taxes on such corporations has gained traction in the UK, which could be used to help households with energy bills.

FAQs

• How much profit did Shell make between July-September?
Shell recorded a profit of $9.5 billion.

• What is the reason for rising energy costs in Europe?
Energy costs in Europe are rising as many countries have stopped imports from Russia due to the Ukraine war.