Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Politics News

Record fuel prices boost Shell profits

by
July 8, 2022
in Politics News
0
Record fuel prices boost Shell profits
0
SHARES
13
VIEWS
Share on FacebookShare on Twitter

Shell expects its refining profits to jump by as much as $1.2 billion this quarter as it benefits from record high fuel prices.

The oil and gas giant said indicative gross profit margins for its global fuel refining business had almost trebled to $28 per barrel in the second quarter, from just over $10 a barrel in the first.

The increased margin was expected to have a positive impact of between $800 million and $1.2 billion on the second-quarter results of products compared with the first quarter of 2022, Shell said.

The disclosure is likely to further inflame tensions over oil industry profits as consumers face a cost of living crisis, including record high prices at the pumps. Petrol prices in Britain hit more than 191p per litre and diesel more than 199p a litre last weekend.

Howard Cox, the founder of FairFuelUK, said: “The foul stench of profiteering rears its ugly head yet again. There is no doubt rip-off pump pricing is controlled by businesses further up the fuel supply chain and it’s the big oil company infrastructures who are the main orchestrators.”

Wholesale refined fuels such as petrol and diesel are trading at a record premium to the crude oil from which they are made because of a shortage of refining capacity, reduced exports from China and disruption caused by western nations shunning Russian exports.

In America, President Biden has demanded that oil companies use their windfall profits to invest in increasing refining capacity to ease the crisis. “At a time of war, refinery profit margins well above normal being passed directly on to American families are not acceptable,” he wrote in a letter to companies including Shell last month.

Shell, Europe’s biggest oil company, reported record high profits of $9.13 billion in the first three months of the year as it benefited from a surge in oil and gas prices following Russia’s invasion of Ukraine. The group has interests in 9 refineries globally, including Europe’s biggest, in the Netherlands.

Alan Gelder, vice-president for refining at Wood Mackenzie, the consultancy, said European refiners had historically made “very poor” margins of less than 5 per cent of turnover, but in the second quarter gross margins had leapt to record highs of about 30 per cent. Although refiners were facing increased operating costs for the natural gas and electricity they use, he estimated that refineries still had profit margins of about 20 per cent of their turnover.

A Shell spokesman said: “We naturally recognise the burden that increased prices have across society, in particular on vulnerable consumers and communities, and concerns around the profits which the current market situation is driving. The reality is that refining margins are set by the market, not any individual player in it.”

Luke Bosdet of the AA said: “Announcements of bumper oil company profits, regardless of market supply and demand factors, will leave a bad taste in the mouths of motorists.”

Shares in Shell closed up 59.3p, or 3 per cent, at £20.33.


ShareTweetPin

Related Posts

Usain Bolt moves to trademark signature victory pose
Politics News

Usain Bolt moves to trademark signature victory pose

August 23, 2022
London to get new airport as Manston is cleared for take-off
Politics News

London to get new airport as Manston is cleared for take-off

August 23, 2022
Over 1,000 regional businesses are fending off cyber-attacks with police-led cyber resilience
Politics News

Over 1,000 regional businesses are fending off cyber-attacks with police-led cyber resilience

August 23, 2022
British Airways to cancel further flights up to the end of October
Politics News

British Airways to cancel further flights up to the end of October

August 23, 2022
Microsoft in trademark row with UK children’s reading firm Word Windows
Politics News

Microsoft in trademark row with UK children’s reading firm Word Windows

August 23, 2022
Crypto fraud revenues drop 65% following market meltdown
Politics News

Crypto fraud revenues drop 65% following market meltdown

August 23, 2022
Next Post
France plans 20B euro inflation-relief package

France plans 20B euro inflation-relief package

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

BSP hikes key rate on inflation risks

BSP hikes key rate on inflation risks

June 23, 2022
Thailand admits to using phone spyware, cites national security

Thailand admits to using phone spyware, cites national security

July 21, 2022
Ukraine’s capital bans Independence Day festivities, fearing Russian attack

Ukraine’s capital bans Independence Day festivities, fearing Russian attack

August 23, 2022
Urgent matters

Urgent matters

June 1, 2022
Stamp Fairtex backs Jenelyn Olsim to win at ONE 158: Tawanchai vs Larsen

Stamp Fairtex backs Jenelyn Olsim to win at ONE 158: Tawanchai vs Larsen

June 1, 2022
Positive Effects of Apetamin

Positive Effects of Apetamin

June 5, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.