BP triples profits as petrol prices soar

Oil and gas giant earns £7bn as data show it is cutting petrol prices more slowly than rivals

BP revealed a tripling of its profits to almost £7billion in the second quarter of the year as data showed the company has cut its petrol prices more slowly than rivals in a blow to millions of motorists. The FTSE 100 oil and gas producer made $8.4billion (£6.9billion) in profits between April and June, its highest in nearly 14 years, as the crisis in Ukraine sent fuel and energy costs rocketing amid a global shortage of supplies. It reported a profit of $2.3billion in the same period of 2021.

BP REVEALED a tripling of profits to almost £7bn as data showed the company has cut its petrol prices more slowly than rivals in a blow to millions of motorists.

The FTSE 100 oil and gas producer made $8.4bn (£6.9bn) in profits between April and June, its highest in nearly 14 years, as the crisis in Ukraine sent fuel and energy costs rocketing amid a global shortage of supplies. Over the same period in 2021 BP reported a profit of $2.3bn.

Motoring experts said the company was slower than its rivals to bring down the costs of fuel at its 300 UK forecourts, reflecting a recent fall in crude oil costs.

The amount the company earns from refining crude oil into petrol and diesel has also leapt, with a tripling of refining margins that is expected to be form part of an investigation by the competition watchdog.

Bernard Looney, BP’S chief executive, said he understood people were “under enormous financial pressure” and added that the business is “working flat out every day” to provide secure, affordable and lower carbon energy.

However, critics accused BP of squeezing motorists to maximise its returns, putting prices up fast as crude became more expensive and then acting too slowly to lower them again after the cost of oil fell last month.

Average petrol prices on BP forecourts fell by 6.8p per litre while diesel prices dropped by 4.2p per litre between July 5 and Aug 1. This compares to national average falls during that period of 9.25p per litre and 6.85p per litre, according to figures from the AA.

Mr Looney told the Financial Times that BP would not follow in the footsteps of French rival Total by introducing one-off fuel price cuts to ease the inflation crisis, because a windfall tax is already reducing its profits.

He said: “It is clearly now for the Government to decide how to allocate those revenues.”

It comes as high wholesale prices have led to record energy bills for households, triggering a worsening cost of living crisis. Analysts at Cornwall Insight yesterday predicted that household energy bills will climb above £3,000 a year in October up from £1,277 a year earlier.

BP does not sell gas or electricity directly to UK households, but household suppliers buy its products.

Average UK petrol prices have fallen from record highs of above 191.5p on July 3, but at 182.69p on Monday it still costs around £100 to fill up the family car.

Alexander Stafford, the Tory MP for Rother Valley, and a member of the parliamentary select committee for business, energy and industrial strategy, said it was “disappointing” that BP was “making such profits on the back for people who are finding it hard to make ends meet and pay their bills.”

BP plans to invest about $14-$15bn in its operations this year, up from $13bn last year.

It has increased its dividend by 10pc to six US cents per share and has raised its share buyback programme to $3.5bn for the latest quarter.

Mr Looney added: “Of course it’s also important that we deliver returns to the people who own the company. These are individuals who have put their savings into the company.”

The record pump prices earlier this year prompted the Competition and Markets Authority to open an ongoing investigation in July into the fuel mar- ket. It highlighted climbing margins at oil refineries, adding about 24p per litre to the price of fuel.

Many refineries have closed in recent years, while the war has also dented Russian output, which has led to the higher margins – the difference between the price refiners pay for crude oil and the amount they receive for the refined product.

BP’S average global fuel refining margins between April and June were $45.5 per barrel, compared to $13.7 per barrel during the same quarter last year.

The CMA said on Tuesday it will report back with initial findings on the