Should there be a windfall tax on oil companies?

I AGREE with Ruth Sunderland: windfall taxes aren’t a magic wand to fix our problems (Mail). The share prices for BP and Shell are 30 per cent down over the past five years. This has no effect on the public sector with final salary pensions, but is a problem for those with money purchase pensions and SIPPs, who were also denied dividends during the pandemic.

ANGUS S. THOMSON, Droitwich, Worcs. OIL giant BP has reported its highest profit for eight years and Shell announced profits of £14 billion in 2021. Gas prices have increased fivefold since before the pandemic and oil prices have almost doubled as economies open up. The pockets of the oil companies are deep, as they have profited from higher wholesale prices. A one-off windfall tax on fuel giants to help households cope with record energy bills is urgently required.

ALEX ORR, Edinburgh.

LET’S look at how other countries deal with rising fuel costs. France is capping bills at 4 per cent; Italy is threatening to prevent companies from trading if they enforce huge hikes; Norway is paying half of people’s energy bills; and Germany is considering a 5 per cent cap. In contrast, Britain does nothing about BP posting a profit of £9.5 billion. I thought we were promised cheaper energy by leaving the EU.

ANDREW NUTT, Bargoed, South Wales. FOLLOWING the recent announcement of record profits by BP and Shell, there are the usual calls for a windfall tax by the Opposition. By earning record profits, these firms will eventually pay much higher taxes. It’s not rocket science!