GOVERNMENT MUST PREVENT PROFITEERING BY OIL COMPANIES - MOORE

11.06.26am BST (GMT +0100) Mon 5th May 2008

Borders MP Michael Moore has reacted to this week's news of record first-quarter profits by the oil companies Shell and BP by calling on the Government to take urgent action to help local people with rising fuel costs.

Shell, the world's second largest oil company, this week announced a 12% increase in its first quarter net profit to £3.92 billion, while BP, the third largest oil company, reported a 48% increase to £3.32 billion. The announcements come on the back of rising prices at the forecourts.

Reacting to the news, Mr Moore commented:

"Many people will feel deeply uncomfortable that some of the world's wealthiest companies are experiencing a profit surge at a time when household budgets are under tremendous pressure.

"Local people are already facing huge price hikes in food and utility bills. Now petrol and diesel prices are rising while the oil companies' profits are going sky high. There are suspicions that the companies are profiteering while many households are left struggling to make ends meet, and questions need to be asked about whether the price rises that we are seeing at the forecourts are proportionate.

"Many Borderers have been in touch with me over the past few days to voice their anger at the Government over their handling of rising fuel prices, utility bills and food costs. By choosing to abolish the lowest rate of tax, the Prime Minister has shown that he does not understand the real impact of these rising costs on many local people who have been left struggling to balance their household finances at this difficult time.

"Rising fuel prices penalise people in rural areas more than most, as we rely much more heavily on our cars. For more than a year now, I have been asking the Government to look at lowering the rate of VAT on fuel for rural areas, to bring prices down to a level seen in the cities. Similar schemes are in place in other countries and work well. This measure would help to alleviate the financial pressure that many of my constituents now find themselves under. It is high time the Government began to look out for people in rural areas."