LONDON (Reuters) – A windfall tax on North Sea oil and gas producers will do little to alleviate a recent surge in energy prices in Britain, Shell Chief Executive Ben van Beurden said on Thursday.
“I’m not convinced that windfall taxes, popular though as they seem, will help us with supply, nor is it going to help us with demand,” van Beurden told reporters after the company announced its highest quarterly profits in eight years on the back of surging oil and gas prices.
Shell was in dialogue with the British government to find ways to alleviate the energy crisis, van Beurden said.
Britain’s main opposition Labour Party called on the government last month to introduce a windfall tax on oil and gas in the face of soaring energy costs.
Prime Minister Boris Johnson’s government will outline a multi-billion-pound plan on Thursday to help households cope with energy bills, shortly after the regulator announces an expected 50% jump in the price cap.
Shell’s British power retail subsidiary, Shell Energy, recorded a loss last year, van Beurden said.
(Reporting by Ron Bousso; editing by Carmel Crimmins)
