The Strategist

UK to impose a levy on excess profits from oil and gas

05/27/2022 - 09:57

The UK plans to introduce a 25 per cent levy on excess profits from oil and gas companies as part of measures to tackle the cost-of-living crisis. This was announced by the country's finance ministry.

"A new 25 per cent levy will be levied on the excess profits earned by oil and gas companies to help families with the cost of living," the authority said in a press release.

Inflation in the UK has been breaking records in recent months. At the beginning of May, the Bank of England raised its inflation forecast for 2022 and expects it to accelerate to 10.25% in the fourth quarter, which could be a historic record.

As a result, millions of families in the country are facing an unprecedented £700 a year rise in electricity and gas prices after the energy price threshold was raised by 54% in early April.