Energy prices boost BP profits

The profits - 23% ahead of the same period last year - will add to anger among hauliers over soaring costs as millions of motorists also feel pain from rising forecourt prices.

The results were driven by the rocketing cost of crude oil over the period - finishing June at nearly 144 US dollars a barrel.

Union leaders have called for a windfall tax on the profits of both BP and fellow major Royal Dutch Shell. "Many will find it hard to accept the continued huge profits being made," said Neil Greig, director of the Institute of Advanced Motorists Motoring Trust.

BP, however, says that it makes less than 1p in profit on every litre of petrol it sells at its 1,300 filling stations across the UK.

In response to calls for a windfall tax, the company adds that it paid 14.5 billion US dollars (£7.3 billion) in taxes worldwide last year - of which 2.33 billion dollars (£1.17 billion) was in the UK.

The half-year figure converts to a profits haul of £37 million a day, or £1.5 million an hour. In the second quarter, BP made profits of 6.85 billion US dollars (£3.44bn), an increase of 6% on a year earlier.

The results were inflated by the company's performance in exploration and production, with profits ahead 51% to 10.77 billion US dollars (£5.41bn) in the second quarter. In refining and marketing, earnings for the three months to June 30 were down to 539 million US dollars (£271m) from 2.74 billion a year earlier. It said higher energy costs continued to impact margins in the division.

Tony Woodley, joint leader of 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. A windfall tax now would ensure the money was there to help the old and vulnerable through these tough times.

"Tax them now so that those who help create these mega profits share in them."