Scottish Greens Push for Expanded Tax on Windfall Oil Profits

(Update) May 15, 2026, 4:00 PM GMT: Article updated with HM Treasury comment.

The Scottish Green Party on Friday renewed calls for the United Kingdom government to bolster taxation on extraordinary profits by oil and gas companies and use the collection to help households pay energy bills.

"New figures published this month show companies including BP, Shell and TotalEnergies continuing to rake in billions while households across Scotland struggle with high energy bills and the cost of living crisis", the Scottish Greens said in an online statement.

Party co-leader Ross Greer said, "It is outrageous that companies can cash in during global turmoil while so many people are being pushed into poverty".

"The UK Government must introduce a far stronger windfall tax on excessive fossil fuel profits, one without the gaping loopholes of the current system", Greer added. "That money could then be used to support people struggling with their bills and to speed up the transition to cheap and clean renewable energy.

“People need lower bills, a stable climate and long-term energy security, not more half-measures riddled with loopholes".

The Energy Profits Levy (EPL), introduced 2022 to tax extraordinary fossil fuel profits, has been extended to 2030 and raised to a 38 percent rate under Autumn Budget 2024.

However, the government is working on the Oil and Gas Price Mechanism (OGPM) to replace the temporary measure. The revenue-based mechanism would be imposed on upstream oil and gas companies at an annual rate of 35 percent. Consultation for the mechanism closed May 2025.

Recently speaking about taxing windfall oil and gas profits, Prime Minister Keir Starmer said he had "raised it in government to ensure that companies can’t profit from price spikes like these and that money will go back into people's pockets".

"I simply will not allow companies to make huge profits from the hardship of working people. This government was elected to stop that", Starmer said in a press briefing March 16, 2026.

In response to the call by the Scottish Greens, Offshore Energies UK policy director Enrique Cornejo said in an emailed statement to Rigzone, "It's important not to conflate global profits with profits generated in the UK. The pre-tax profits reported by international oil and gas companies are global figures, reflecting earnings across all the countries in which they operate. Those profits are largely generated and taxed overseas, not simply in the UK".

"By contrast, operators active in the UK North Sea have experienced seven consecutive quarters of negative returns, highlighting the very different economic reality facing firms and their people at home", Cornejo said.

"To protect consumers while safeguarding energy security, the Treasury has proposed a permanent windfall tax that taxes excess revenues when prices are high, while continuing to encourage investment in UK oil and gas. The proposed Oil and Gas Price Mechanism offers a sustainable long-term approach, balancing additional tax to support consumers with the need for domestic supply, jobs and resilience".

A Treasury spokesperson said, "Our focus is on making sure companies pay their fair share, particularly in exceptional circumstances".

"That's why the government introduced the Energy Profits Levy - a 38 percent windfall tax on extraordianry profits when oil and gas prices are unusually high - so those profits help support households and fund public services", the spokesperson said in reply to Rigzone. "The levy has already raised GBP 12 billion [$15.98 billion].

"Oil and gas companies also continue to pay corporation tax on their profits, and we're working with the sector to provide long-term certainty, back investment and jobs, and ensure the North Sea has a prosperous and sustainable future".

Onshore industry association UKOOG, BP PLC, Shell PLC and TotalEnergies SE have yet to reply to Rigzone's request for comment on the Scottish Greens' statement.

To contact the author, email jov.onsat@rigzone.com