British oil company Shell has the highest profit in 115 years.
In the context of Ukraine-Russia war, the British multinational oil and gas company Shell made record profits by selling fuel at higher prices. The company made a profit of 3,990 million USD in 2022. The profit was double the previous year and the highest in Shell’s 115-year history.
After the start of the Ukraine-Russia war, many countries and multinational companies are in trouble, but many have benefited. Especially after the start of the war, global fuel prices increased several times. In this, energy sector companies have made record profits by selling oil and gas at higher prices in the last one year. British multinational oil and gas company Shell is one of them. This British company has created history in terms of profits.
Fuel prices around the world started to rise after the end of corona restrictions. Since March last year, fuel prices have increased abnormally. At this time, the price of crude Brent oil rose to around $128 per barrel. However, it later fell back to $83 per barrel. Similarly, the price of gas has also come down a lot after an abnormal rise. However, during this period, the fuel companies sell the fuel at a higher price, which makes the profit. However, despite the record profits of the energy companies, ordinary citizens and businessmen are suffering. Many expressed anger at Shell’s profits at a time when British citizens are struggling with rising energy costs due to inflation. So the citizens of the country demanded more taxes on energy companies including Shell. On the other hand, the country’s opposition parties have said that Shell’s profits are “outrageous”. The government is allowing energy companies to make such profits. Apart from this, they also called for canceling the next plan to increase the price of fuel. UK oil and gas companies are subject to corporate tax of 30 per cent on their profits. Apart from this, they have to pay 10 percent supplementary tax. But those who make a lot of profit, come under a special type of tax called windfall. It was 25 percent for oil and gas companies. But recently it has been increased to 35 percent. As a result, these companies will now have to pay up to 75 percent tax. Shell said they will have to pay over $500 million in taxes in 2023. Out of this, 13.4 million US dollars will be paid in windfall tax. Shell’s chief financial officer, Sinead Gorman, said in 2022, Shell paid $1.3 billion in taxes worldwide. The company supplies 11 percent of liquefied natural gas to the European Union. Russia was under pressure last year to increase its supply due to sanctions by various European countries.