Record fuel bills - �13.9bn record profit for shell

[Gromit]

As gas and electricity prices are to increase 17% due to the rise in oil prices, are you angered that the oil companies are announcing record profits. Shell have just made �13.9bn

Are we being ripped off?

[R1Man]

if that's what Shell are making, just think what the governement take is! Bear in mind also that they also get a slice of the profit, so most of it goes to Gordy to pi55 away on his various schemes.

Yes I think we are being ripped off.

[kwicky]

With oil being bought on the spot market some months ahead and prices at the pumps lagging the current oil price someone is making a killing.

[madworld]

No Brainer. Everyone is taking us for a ride.

[youngmafbog]

Its not just the UK thought is it. So just exactly how much do you think you are being ripped off per litre?

As R1Man pointed out its McBottle who is the highwayman far more than Shell

[nedflanders]

I agree that the Government are the ones who will be gaining the most from this. They will have budgeted for petrol to be about 95p a litre but its about 105p so they are raking in about 7p a litre more in tax than expected. if they capped the amount of tax they filter the price would still be under a �. I think its about time the public did something about it as its getting out of hand.
I also heard the shell spokesman on the radio this morning saying that "they dont make a profit on the forecourt". Anyone who beleives that a multinational corporation would keep an ongoing concern that makes no profit needs a brain donor.

[helpmetoo]

we live in a capitalist democracy,,

therefore the large profit despite the huge risk and investment shell makes is taxed according to the law which in turn is devised by your elected representative.

the government raises its revenue in order to afford to bail out the scroungers in society and chuck a pitiful percentage to the genuinely needy in various ways...

the most penal percentage wise is motor fuel and tobacco,

if you dont like it the options are dont drive or smoke or change brands, if you think the efficient companies are ripping you off, failing that vote for a change in the law.

[Twenty20]

This level of profit shows that they are overcharging their clients (you and me at the end of the line) by some considerable margin. Every company strives to make profits but when it gets to these sorts of sums it becomes somewhat obscene.

[Bazile]

' You can be sure of shell '

You certainly can

[Coobeastie]

Would imagine that the profit isn't entirely down to purchases at the fuel pumps and also that the principle shareholders will consist of a large number of pension funds so it all goes around eventually.

[buildersmate]

Most of the above comments seem to fail to hit the mark.
The oil industry consists of three main segments - extraction, refining and distribution/retail. In the UK, Shell make any profit they do make from distribution/retail from the purchases in the shops linked to the petrol stations.
The huge profit comes from the extraction activity and the current high world market price for a barrel of crude oil. Why is this so high? - the large demand versus supply. Its simple economics and the global crude oil market is one of the few true situations where the market dynamics apply. Why doesn't the supply go up? - because the main oil producing countries don't want it to. Blame Saudi for that - they could easily pump more crude. In the past OPEC, which operates as a cartel to try and force crude prices up, has failed because someone in the cartel breaks ranks and pumps more than they promised to.
Shell merely transfers crude at the world market price to its refining division, then the same situation applies between its refining division and its retail division.
Don't forget that Shell prices at the pumps in the UK are actually some of the lowest.
BP are also in the fortunate position of owning all the three links in the vertically-integrated market so watch for record profits from them later.
Not so some other operators like the supermarkets and independents that merely act as retailers/distributors, buying their product on the open market.

[jollygreen]

Oh come on people, a lot of you are missing the point. If brent crude is at $90/bbl, that's about 30p/litre for the raw material. refining doesn't cost mkuch, what you're paying is tax, tax, tax and then some tax. Yes, Shell make a lot of money but they invested over �30bn in order to make their �14bn profit. That's a good return but consider the risk. If you don't like it, don't buy the product. But then you'll go nuts because Timberland will start making record profts and they'll be the next target of the economically ignorant left wing.

[amsterdammer]

Could not agree more, Buildersmate & Jollygreen, you both summed it up most succinctly!
Not only that , my pension fund invests in Shell, & I also hold stock myself, would"nt want to see the share price dropping!!