Oil and gas giant Shell says it has posted a record annual profit after energy prices rose last year following Russia's invasion of Ukraine.

Profits are expected to reach $39.9bn (£32.2bn) in 2022, more than double last year's total and the highest in its 115-year history, according to Shell.

Energy companies have posted record earnings since oil and gas prices surged after the invasion of Ukraine.

Since the news, oil companies have been under pressure to pay higher taxes as domestic consumers struggle to pay for rising bill prices.

Opposition parties have described Shell's profits as 'outrageous'. He says that the government is giving free concessions to energy companies.

They have also demanded an end to the increase in energy prices in April.

Energy prices had started to rise after the end of the Covid-19 lockdown, but after the events in Ukraine in March last year, concerns about supply increased sharply.

Brent crude oil prices peaked at around $128 a barrel after the attack, but have since fallen to around $83. Gas prices also increased but have now come down.

Energy companies have made good profits, but energy bills for households and businesses have risen.

Last year the UK government introduced a windfall tax on the 'abnormal' earnings of energy companies, known as the Energy Profits Levy, to fund a scheme to reduce gas and electricity bills.

Despite the move, Shell said it expected to pay no UK tax this year.

However, on Thursday the company said it owes $134 million in UK windfall tax for 2022, and expects to pay more than $500 million in 2023.

This may seem like a small amount compared to the company's profits, but Shell derives only five percent of its revenue from the UK.

However, critics say Shell is a UK-headquartered company and is paying out more to its shareholders than it spends on renewable investments.

The announcement has increased pressure on Rishi Sonak and Jeremy Hunt to raise more money from oil and gas profits.

A Downing Street official says he understands public anger at the 'extraordinary' profits but indicated there are no plans to increase windfall tax.

In response to further questions from reporters, the prime minister's spokesman said questions about possible changes were "for the chancellor".

Without detailing the specific measures, he added that if petrol is found expensive at the petrol pump after the reduction in wholesale prices, then the government can take action.

The government is currently capping gas and electricity bills so a household using a typical amount of energy will pay £2,500 a year.

However, this amount is still two guineas less than before the Russian invasion, and the limit is likely to rise to £3,000 in April.

The government's windfall tax only applies to profits from UK oil and gas extraction. The rate was originally set at 25 percent but has now been increased to 35 percent.

Oil and gas companies pay 30 percent corporation tax on their profits, plus an additional rate of 10 percent. With the new windfall tax, the total tax rate rises to 75 percent.

However, companies can reduce the amount of the tax by carrying losses or spending on measures such as decommissioning North Sea oil platforms. This has meant that energy giants such as BP and Shell have paid little or no tax in the UK in recent years.

'Fair Share'

Shell's annual profit figures also surpassed the previous record set in 2008. The company also said it paid $6.3 billion to its shareholders in the final three months of 2022, and that it planned to buy back another $4 billion in shares.

Shell chief executive Wael Sawan said it was "incredibly difficult times, we're seeing rising inflation around the world" but Shell was doing its part by investing in renewable technologies.

The company's chief financial officer, Sinead Gorman, added that Shell paid $13 billion in taxes globally in 2022. It also accounted for 11 percent of liquefied natural gas shipments to the EU, easing supply pressure from sanctions on Russia.
Labour's shadow climate change secretary, Ed Miliband, said: 'The British public faces a 40 per cent rise in energy prices in April, with the government refusing to impose an adequate windfall tax on fossil fuel companies to make bumper profits. is allowing.'

"Labor plans to end energy price hikes in April because it is right that companies making windfall profits from war income play their part."

Liberal Democrat leader Ed Davey said "No company should be making this kind of ill-gotten gains from Putin's illegal invasion of Ukraine."

Oil and gas companies should be properly taxed and at least ensure that energy bills do not go up again in April.

Trade Union Congress (TUC) general secretary Paul Novak called on ministers to introduce a bigger windfall tax, adding "the time for excuses is over."

"Instead of withholding the salaries of paramedics, teachers, firefighters and millions of civil servants who work in difficult conditions, ministers should extract a larger share from oil and gas companies," he added.