New windfall tax on oil and gas firms

In the last year, the UK government introduced a windfall tax on the profits of firms to help fund its scheme to lower gas and electricity bills.

After the end of the Covid lock-downs, oil and gas prices had begun to rise, but went up sharply after Russia invaded Ukraine.

It led to bumper profits for energy companies, but also spurred a rise in energy bills for households and businesses. Along with rising food prices it has pushed inflation - the rate at which prices rise to a 40 year high.

It's more than twice what it was before Russia's invasion began.

The windfall tax was introduced in May on profits made from extracting UK oil and gas. The rate was originally set at 25% but was increased to 35% in November.

Shell said earlier this year it would pay tax in the UK for the first time since 2017 as a result of the new windfall tax.

Shell is well positioned to be the trusted partner in the energy transition, according to Shell chief executive Wael Sawan, who said the firm's results show the strength of Shell's differentiated portfolio and our capacity to deliver vital energy to customers in a volatile world.