UK: Petrol companies aren

You’ll no doubt have read by now about Royal Dutch Shell’s “obscene” profits. The oil major broke European records for corporate profits by earning


“Shell shareholders are doing very nicely while the rest of us are paying the price and struggling,” said Tony.

How well are they really doing?

Well, I hate to admit it, particularly as I’ve tipped Shell quite a few times in the past, but the truth is, Shell shareholders aren’t doing all that fabulously well. The stock’s only risen about 2% in the past year.

Sure, you’ll have had a dividend payout too and it’s an awful lot better than the FTSE 100 has done in the past year, but you’re still not going to be bathing in champagne any time soon (though stick with it – I still think it’s a very worthwhile stock to hold onto).

But let’s get back to Tony. “There are no problems with profits,” – glad to hear it – “but consumers should question the excessive mega-profits of the oil companies in the light of UK companies and hauliers saying they are being pressed on high fuel and energy costs, pensioners struggling to pay energy bills, and motorists struggling to fill their petrol tanks.”

Tony and chums topped it all off with calls for a windfall tax on the oil companies. The idea of a windfall tax is just ridiculous of course – Shell makes more than 90% of its profits outside the UK for one thing, making it hard to justify a windfall tax on its entire global earnings. But let’s take a closer look at this idea that the petrol companies are solely responsible for soaring prices at the pump.

MSN