The same IMF working paper that I have referred to this morning with regard to consumer energy price inflation also includes a chart on who has benefitted from the increase in oil, gas and electricity prices:
So, oil and gas companies are, as I predicted back in February, coining in the gains resulting from the war in Ukraine.
Markets now also very obviously understand that utility companies also have an opportunity to profit in this situation, albeit not by as much.
And the rest of the economy is suffering.
This is a chart plotting exploitation in plain sight.
Now, what is going to be done about it? Are we really going to allow war to be exploited in this way?
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A very interesting chart. Yesterday, I manged to buy unleaded fuel in rural Wales from an Esso garage for £1.639 per L. On the way home I passed the usual outlets selling fuel at closer to 1.90. 20-25 p difference in prices on a 50 mile journey. Someone is doing well out of this and it isn’t the consumer.
The first answer is always the Saudi’s..they control the price of oil its that simple. Everyone else is in the wake of their actions.
Not true
OPEC clearly influence the price
But this claim is false
Not surprising that those rent-seeking in the stock-markets are latching oil to energy companies when their results are massive – https://www.statista.com/chart/27887/big-oil-sees-profits-increase/
And not surprising that Shell are giving all employees an 8% bonus https://www.theguardian.com/business/2022/aug/03/shell-staff-bonus-record-profits-oil-gas-prices.
Both are depressing reading for everyone struggling with energy bills and the ramifications of inflation while seeing government inaction during this blatant profiteering and no mention of remedy from all the candidates for next PM.
As the cold weather bites this winter there will be insufficient government help for the needy.
Those of us with deep enough pockets must seek local solutions – should we turn our village halls into warm day rooms and dormitories and/or create local fuel banks to help the needy?
A bonus solves nothing. Next year basic pay is at pre-inflation rates
Agreed – Bonuses are not pay increases.
When I worked for a multinational during the oil crisis, my PAY was index-linked every month with the obvious long-term benefit.
I doubt whether any company will do this now.
What are your thoughts on this?
https://dontpay.uk/
I think it’s going to get a lot of support – because people will not be able to pay