UK Imposes 25% Windfall Tax on Oil and Gas Producers' Profits

Credit: douglas davidsonEyeEm/AdobeStock
Credit: douglas davidsonEyeEm/AdobeStock

Britain announced a 25% windfall tax on oil and gas producers' profits on Thursday, alongside a package of support for households struggling to meet rising energy bills.

The announcement marks a change of heart for Prime Minister Boris Johnson's government which had previously resisted windfall taxes and called them a deterrent to investment.

Facing intense political pressure to provide more support for billpayers coping with what political opponents and campaigners have called a cost-of-living crisis, finance minister Rishi Sunak said energy firms were making extraordinary profits while Britons struggled.

"We are introducing a temporary, targeted Energy Profits Levy charged on profits of oil and gas companies at a rate of 25%," Sunak said.

"We're also building in a new investment allowance that doubles the relief for the energy companies that invest their profits in the UK."

Earlier this week, the energy regulator said that a cap on gas and electricity bills was set to rise by another 40% in October. 

(Reuters - Reporting by Muvija M Andy Bruce and Kylie MacLellan, writing by William James, editing by Hugh Lawson, Frank Jack Daniel and Michael Holden)

Current News

Hess Sets Date for Shareholder Vote on Chevron Merger

Hess Sets Date for Shareholder

US Releases Offshore Wind Liftoff Report and Promises Funding

US Releases Offshore Wind Lift

US Interior Department Finalizes Offshore Renewable Energy Rule

US Interior Department Finaliz

US Plans 12 Offshore Wind Auctions Over Five Years

US Plans 12 Offshore Wind Auct

Subscribe for OE Digital E‑News

Offshore Engineer Magazine