BP and Shell in the week just gone announced record profits at the same time as prices at the pump increased.
“Shell and BP made a combined £7.2billion profit in just three months…” reported the Telegraph in the UK. This is “…the equivalent of £3.3million per hour.”
We think we have it bad in New Zealand paying $1.88 a litre. Converting that to gallons, so we can make a UK comparison, that equals $8.50 a gallon. In the UK motorists $12.76 a gallon, or 50% more than us. And they are closer to the oil fields.
It costs a lot to drill for oil. First you have to find the damn stuff, then you have to refine it and turn it into petrol or diesel. So we shouldn’t bregrudge them their profits, except if their profits come off low production costs. That’s when it becomes obscene.
In the UK the Labour Government taxes petrol so much that over 65% of the price at pump returns to them. We consider the 35% in taxes and levies here in New Zealand excessive. Is the government investing that money back into research on alternative fuels, or does it return to the general coffers?