Despite the gas price crisis, Shell and BP oil giants reap huge profits

After the global rise in gas prices, Oil giants like Shell and BP expect to make huge profits.

New data shows that petrol prices are at an all-time high, having risen by nearly 30p over a year. Diesel, however, is just a fraction of its former record.

According to the AA, the average UK petrol price was 142.94p per litre on Sunday. This beats the previous record of 0.46p set in April 2012.

Diesel reached 146.5p per litre on Sunday, just short of its record high of 147.93p.

When Shell reports on Thursday, it will project a post-quarterly revenue forecast of £1.5bn in natural gas division.

Global shortages of gas have caused global increases in gas prices.

Since the beginning of the year, suppliers have seen their gas prices rise by 250 percent.

Asian liquified gas (LNG), reported prices that were four times higher than those of the third quarter of 2020.

13 energy companies have stopped trading in the UK since September due to sharply rising wholesale costs.

Consumers are protected currently by Ofgem’s PS1,277 annual cost cap. This is expected to rise at the next review, April 2022.

Brent has risen more than 60% since the beginning of the year. Brent reached a nine-year high of $86.10 per barrel last week.

Shell shares have risen 35% to £17.49 during the same period, while BP shares have risen 40% to 356p

BP will release its third-quarter results in November.

With governments meeting in Glasgow later this week for the COP26 conference on climate change, there is increasing pressure on the sector to invest in renewables.

BP has committed to 2050 net-zero carbon emissions and announced plans to tenfold low carbon investments by the end of the decade.

Shell aims to reduce its carbon footprint by 20% by 2030 and 100% by 2050 for all of its products.

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