Shell Rakes in $9.1 Billion in First Quarter. What Does It Mean for the Rising Cost of Living?Shell reported record high earnings of $9.13 billion in the first quarter of 2022, prompting action from lawmakers to impose higher taxes on gas companies to aid those struggling amidst rising prices.

ByMadeline Garfinkle•May 5, 2022

Whilegas prices soar, Shell reported "obscene" profits of $9.13 billion in the first quarter of 2022 — and they aren't the only ones. BP and Total Energies also raked in record-high revenue despite significant hits taken as oil giants exited operations inRussiafollowing theinvasion of Ukraine.

The massive earnings have prompted lawmakers from Britain's Labor Party to intervene, advocating for a windfall tax to mitigate the struggles of a不断上升的cost of living.

“用一大块臃肿的利润Shell, BP and others are raking in to make homes warmer, more energy efficient and kitted out with heat pumps, the government could start to really tackle the climate and cost of living crises simultaneously," says Philip Evans oil and gas campaigner of Greenpeace UK, in a statement toThe Guardian.

Still, despite lawmakers repeatedly calling onBoris Johnsonto enforce higher taxes on oil and gas companies, he hasrejectedthe pleas, stating that the move would discourage investors and cause prices to stay high in the long run. Meanwhile, as shares rose 3% Thursday morning, Shell is incentivizing holders.

The oil giant plans to buy back $8.5 billion shares in the first half of the year andexpectsshareholder distributions to exceed 30% of cash flow in the second half.

It remains unclear whether the oil earnings will continue to hit record highs asgas prices riseand contribute toinflation, but Shell chief executive Ben van Beurdensaysthe company has been "engaging with governments, customers and suppliers to work through the challenging implications and provide support and solutions where [they] can."