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Shell boss says taxing energy firms to help the poor is 'inevitable' | Shell boss says taxing energy firms to help the poor is 'inevitable' |
(about 1 hour later) | |
Taxes on firms within the oil and gas industry are "inevitable" to help the poorest people, the outgoing boss of Shell has said. | Taxes on firms within the oil and gas industry are "inevitable" to help the poorest people, the outgoing boss of Shell has said. |
Ben van Beurden said that energy markets cannot behave in a way that "damage a significant part of society". | Ben van Beurden said that energy markets cannot behave in a way that "damage a significant part of society". |
Households in the UK have been under pressure from rising energy bills as gas prices have soared. | |
The UK government under Liz Truss has pushed back against extending a windfall tax on oil and gas firms. | The UK government under Liz Truss has pushed back against extending a windfall tax on oil and gas firms. |
Last week, the EU agreed emergency measures to charge energy firms on record profits. | |
Energy prices jumped when Russia invaded Ukraine earlier this year, although prices had already been rising as economies began to recover after Covid lockdowns were lifted. | |
What is the windfall tax on oil and gas companies and how does it work? | |
EU agrees windfall tax on energy firms | |
Speaking to the Energy Intelligence Forum, an oil industry event, Mr van Beurden said: "You cannot have a market that behaves in such a way - logically and effectively and everything else - that it's going to damage a significant part of society." | Speaking to the Energy Intelligence Forum, an oil industry event, Mr van Beurden said: "You cannot have a market that behaves in such a way - logically and effectively and everything else - that it's going to damage a significant part of society." |
He said that "one way or another" there would be government intervention that "results in protecting the poorest". | He said that "one way or another" there would be government intervention that "results in protecting the poorest". |
"That probably means governments need to tax people in this room to pay for it - I think we just have to accept [that] as a societal reality," he said. | |
Mr van Beurden added that taxes can be brought in "smartly and not so smartly". | Mr van Beurden added that taxes can be brought in "smartly and not so smartly". |
"There is a discussion to be had about it but I think it's inevitable," he said. | |
However, governments should not intervene to cap gas prices, he added. | |
The UK brought in a windfall tax on bumper oil and gas profits in May, but Prime Minister Liz Truss has ruled out extending it. | |
The tax - called the Energy Profit Levy - applies to profits made by companies from extracting UK oil and gas, and the Treasury expects it to raise about £5bn in its first year. |