BP’s record profits come at a human cost

These astronomical profits are a startling reminder that when conflict drives up the price of oil and gas, energy companies profit and households pay. That is not a coincidence, it is a consequence of the way our energy system is structured.

An examination of company accounts shows that energy firms posted over £23.1 billion in profit from UK operations in 2025, before a single penny of profit from the Iran conflict windfall had been counted.

BP's first-quarter results mark the moment when those war windfalls begin appearing on balance sheets. They will not be the last. According to the Common Wealth think tank, around a quarter of every energy bill is taken in profit across the industry. One pound in every four that households spend keeping the lights on and the heating running flows out as profit, not as energy.

The people running these companies are doing well, too. Analysis by the End Fuel Poverty Coalition shows that bosses at major energy firms have seen their personal shareholdings surge since the conflict began.

While the energy industry lobbies against the Energy Profits Levy, BP's results are a vivid illustration of exactly why it is so necessary. The public already understands this: polling shows support for a windfall tax on energy company profits by a margin of two to one.

Britain's energy system is at a crossroads. On the one hand, renewables boost energy security and help the UK avoid expensive gas imports, which will become a bigger part of our energy mix as the North Sea continues its geological decline. As the International Energy Agency's chief executive said, more drilling in the North Sea "would not change much for the UK’s energy security, nor would [it] change the price of oil and gas."

Politicians must show whose side they are on: the households struggling with energy bills, or the executives and shareholders calling for an early end to the Energy Profits Levy and more fossil fuel extraction.

Household bills are forecast to surge again starting in July. The Government must respond with emergency support for the hardest-hit households and accelerate the shift to a renewables-led energy system that insulates people from price shocks caused by our structural dependence on oil and gas markets. Every quarter that passes without reform is another quarter in which history repeats itself: volatility on global markets, profits on trading floors, higher bills through letterboxes.

Behind these figures are millions of households that cannot afford to heat their homes to a safe temperature. Around 8 million adults spend each winter in cold, damp conditions, bringing significant health consequences. There is a human cost to the energy system that has consistently failed the people it is supposed to serve.

____________________

Simon Francis is coordinator of the End Fuel Poverty Coalition.

LBC Opinion provides a platform for diverse opinions on current affairs and matters of public interest.

The views expressed are those of the authors and do not necessarily reflect the official LBC position.

To contact us email opinion@lbc.co.uk