Shell expects more record-breaking profits

The oil and gas giant said indicative gross profit margins would treble for its global fuel refining business. It expected them to leap from $28 (£23) per barrel in Q2 2022.

A barrel cost just over $10 (£8) in Q1 2022.

Shell said the increased margin is likely to bring a profit uplift of between $800m (£670m) and $1.2bn (£1bn) in the second quarter of the year, compared to Q1 2022.

The news has angered campaigners, as petrol prices in Britain surged to over 191 pence per litre and diesel more than 199 pence per litre at the start of July.

It comes after Shell had already reported record high profits of $9.13bn (£7.6bn) in the first quarter of 2021.

Howard Cox, founder of FairFuelUK, said: “The foul stench of profiteering rears its ugly head yet again.

“There is no doubt rip-off pump pricing is controlled by businesses further up the fuel supply chain and it’s the big oil company infrastructures who are the main orchestrators.”

The record premium at which petrol and diesel are trading at is down to the crude oil from which they are made.

This is due to western nations shunning Russian exports, a shortage of refining capacity and reduced exports from China.

A Shell spokesman said: “We naturally recognise the burden that increased prices have across society, in particular on vulnerable consumers and communities, and concerns around the profits which the current market situation is driving.

“The reality is that refining margins are set by the market, not any individual player in it.”

Luke Bosdet, AA fuel spokesman, said: “Announcements of bumper oil company profits, regardless of market supply and demand factors, will leave a bad taste in the mouths of motorists.”