Oil giant BP has been condemned for making “astronomical” profits of £366 a second while households bear the cost of the Iran war. BP’s profits more than doubled to almost £2.4 billion in the first three months of this year, driven by a surge in wholesale oil prices. Since the conflict began at the end of February, much of this profit surge occurred within just a few weeks.
Public Outrage Over BP Profits
While BP profits soar, ordinary people are suffering at the pumps and fearing rising energy bills. Barry Seckerson, 86, a widower from Stoke-on-Trent, said: “It’s scandalous – outrageous. I have arthritis really bad which means I have to have the heating on.” He added: “It would kill me if I wasn’t able to put the heating on.”
The national average for unleaded petrol has jumped 24p a litre to over 157p since the war began, while diesel is up nearly 47p to an average of 189p. Industry experts Cornwall Insight predict that Ofgem’s price cap could rise from £1,641 to £1,843 a year in July, largely due to higher wholesale energy costs.
Jon Farley, 68, from Leeds, said: “What a rip off, it’s time to fleece the bosses and take BP into public ownership.” Peter Olech, 62, from Edinburgh, added: “War is going to mean higher energy bills for most UK households while private energy companies will rake in obscene profits.” Imogen Thomas, 31, from Battle, said: “Politicians are letting them get away with blatant profiteering.”
Pensioners Hit Hard
Jan Shortt, 80, general secretary of the National Pensioners Convention, said: “I worry constantly about what my bills will be next month, let alone next winter. When I see that energy companies are making billions in profit, I just think: who is this system actually for? I want the government to step in before July and make sure pensioners are not left to choose between heating and eating.”
Producers like BP are expected to be among the big winners from the economic turmoil unleashed by the US-Israel war with Iran. Brent crude leapt from $60 a barrel before the war to a high of $119 as Iran’s blockade of the Strait of Hormuz triggered a fresh energy shock. While the near shutdown of this crucial route impacted shipments, it also delivered a windfall from rocketing prices.
The bonanza looks set to continue after oil prices hit $111 a barrel on Tuesday, as peace talks between Tehran and Washington showed little progress. BP’s profit haul smashed the £2 billion experts were predicting.
Campaigners Condemn Profiteering
Simon Francis, coordinator for the End Fuel Poverty Coalition, said: “These astronomical profits are a startling reminder that when conflict drives up the price of oil and gas, energy companies profit and households pay.” Maja Darlington, climate campaigner for Greenpeace UK, said: “The oil industry’s capacity to profiteer from human misery is almost limitless.”
Patrick Galey, head of news investigations at Global Witness, said: “It is horrifying to see BP’s profits grow as millions suffer the fallout from the US-Israel war on Iran. Unfortunately we’ve been here before – when Russia invaded Ukraine four years ago we saw big oil firms make bumper profits from spiralling fuel costs.”
Robert Palmer, deputy director at campaign group Uplift, said: “It’s appalling that while millions are worrying over energy bills, oil giants like BP are raking in billions. Today the oil major has been given a further boost with an unearned windfall because of the Iran conflict. Worse, BP is also rowing back on investment in wind and solar energy.”
BP Boss in Line for £13.7m Payout
Meg O’Neill, 55, who took over as BP’s chief executive on April 1, is in line for a potential £13.7 million payout this year. She said: “BP’s team has been working relentlessly to keep our assets producing safely, reliably and efficiently. We are working with customers and governments to get fuel where it’s needed.” The American, who spent 23 years at ExxonMobil, is guaranteed a £1.6 million salary and nearly £500,000 towards her pension, with potential bonuses and long-term rewards.
Chancellor Rachel Reeves said energy firms’ profits “is exactly why” the Government has extended the energy profits levy. She told the Commons: “In the first three months of this year, revenues from fuel duty were no higher than a year ago. With regards to the profits of energy companies, that is exactly why we extended the energy profits levy to make sure that windfall profits could be taxed appropriately.”
BP’s update showed its customers and products division, including its oil trading unit, reported profits of £1.84 billion, up from £1 billion in the previous quarter and just £76.2 million a year ago, as traders capitalised on highly volatile oil prices.
