Call for windfall tax on BP's 'obscene' £37 million a day profits

BP faced demands for a windfall tax yesterday as it announced 'obscene' half-year profits of £6.75billion on the back of record fuel prices.

With motorists, businesses and hauliers facing increasing pain at the pumps, the company's profits rose to around £37million a day or £430 a second - an increase of 23 per cent on the same period last year.

In the second quarter alone, the oil giant made profits of £3.44billion, an increase of 6 per cent on a year ago.

At the same time, motorists suffered an average 10p rise in the price of a litre of petrol to

118.2p, with average diesel prices up more than 14p to 131.6p, said the AA.

Unions and environmental groups last night demanded the Government impose a windfall tax on the oil giants.

However, BP insisted its profits were helping the economy and boosting pensions.

BP dividends contribute £1 in every £10 to UK pension funds, it noted.

But Tony Woodley, of the union Unite, said: 'While ordinary people struggle to make ends meet, BP's boardroom is wading through knee-deep profits.

'It is high time our Government moved to stop the fuel corporates picking the pockets of the poor and needy.'

Friends of the Earth also demanded a windfall tax, which it said should be used to fund cuts in domestic fuel bills and boost energy-saving projects for homes.

The oil giant denied it is profiteering from the rocketing cost of crude and insisted its profits are due to the company's investment and efforts.

The cost of a barrel of oil hit record levels during the period to finish in June at nearly $144. It has since risen to $147.

Pressure on BP increased last week after several super-markets announced cuts to their forecourt charges.

For motorists buying at least £50 worth of fuel, Sainsbury's said it would cut 5p off the cost of a litre. Asda, Morrison and Tesco also announced cuts.

Struggling: While oil companies profit, drivers and hauliers are left paying through the nose for petrol and diesel

A spokesman for BP said the price of its unleaded petrol had fallen 2.5p since last Monday to 117.9p a litre, while leaded decreased almost as much to 131.7p a litre.

The company also defended its record profits, insisting it makes less than 1p in profit on every litre of petrol sold at its UK filling stations.

It also rejected calls for a windfall tax, pointing out that it paid £7.3billion in taxes worldwide last year - of which £1.17billion was in the UK.

Exploration and production profits were up 51 per cent to £5.41billion in the second quarter.

In refining and marketing, earnings for the three months to June 30 were £271million.

• The Conservatives have pledged to introduce a 'fair tax' on fuel to ease the pain of high fuel costs for the country's 33million motorists.

The 'fuel duty stabiliser' would lower the tax on fuel when the cost of oil goes up, and increase it when it falls.

The Conservatives said the Government must get off the fuel-duty 'escalator' that sees duty on fuel rising - even when oil prices are soaring.