Energy giant Shell is set to give its workers a one-time 8% bonus after the company reported record profits fueled by high oil and gas prices.
Most of the 82,000 people it employs worldwide will get the raise, but top executives will be left out.
Shell said the award reflected its financial success and was “not an answer” to the rising cost of living.
Record energy company profits have prompted calls for tougher taxes to help families with mounting bills.
This is due to forecasters predicting typical household energy bills will hit more than £3,600 a year this winter. In October 2021, the average bill was £1,400 per year.
Shell last week reported £9 billion profit for the second quarter after benefiting from higher gas and oil prices.
Its rival BP has also reported its biggest quarterly profit in 14 years, with underlying earnings of £6.9 billion.
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The companies’ huge profit growth has been fueled by higher oil and gas prices, which have been boosted by the war in Ukraine.
In recent months, post-invasion Russia has cut back supplies to Europe, and there are growing fears it could shut off taps altogether.
The potential of gas supply problems has caused wholesale prices to rise, leading energy companies to pass these costs on to customers – pushing up household energy bills by unprecedented amounts.
High oil prices have also seen petrol and diesel prices at pumps hit record highs in recent months, and inflation – the rate at which prices are rising – is at a 40-year high.
Shell said in a statement that its employees would receive 8% of their salary as a bonus “in recognition of the contribution our employees have made to Shell’s strong operational performance against a recently challenging backdrop”.
“The award allows these employees to participate in our current operational and financial success – it is not an answer to inflation or cost of living challenges,” the company added.
Shell has also said it will return billions of dollars to its shareholders after it released its quarterly financial results last month.
The government has introduced a package of measures to help people with energy bills, such as B. a rebate of £400, and announced in May that oil and gas companies would pay an additional 25% on profits.
The tax will apply from 26 May to UK profits, which represent a small part of most oil and gas companies’ operations.
And Shell and BP will not have to pay a levy on the majority of their recent profits, made between April and June, as the legislation comes into force.
The Treasury expects the windfall tax to raise around £5billion in its first year, but critics of such taxes argue they can hit pension funds invested in energy companies.
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