BP feels backlash as profits hit £6.4bn in three months

ENERGY firms faced huge pressure to slash petrol and fuel bills today after oil giant BP posted record profits of £6.4 billion in three months.

The firm's mammoth increase in profits for July to September was 148 per cent higher than the same period last year.

It immediately triggered calls from Gordon Brown for all energy firms to pass on recent oil price falls to householders and motorists.

BP's bumper returns meant that it raked in £70 million a day - or £2.9 million an hour - as prices soared at the pumps this summer to almost $150 a barrel. However, oil prices have since plummeted to almost $60 amid the growing global recession, and ministers and consumer groups want bills to start reflecting the rapid drop in crude costs.

As Labour MPs and unions resurrected calls for a windfall tax, the Prime Minister demanded that BP and other petrol firms immediately cut their prices. "We're trying to help hardpressed families through difficult times, while calling on the energy companies to pass on the falling gas and oil prices for consumers," Mr Brown said.

He added that, "just as when the price goes up, people see it immediately reflected in the petrol pump price", he wanted to see the drop reflected now.

Oil firms faced cross-party pressure as shadow chancellor George Osborne also said that it would be a "scandal" if petrol prices did not start to fall. "BP has absolutely no excuse for not passing on any fuel price falls to customers. It would be a scandal if they do not," he said.

Average petrol prices this weekend fell below the £1 mark for the first time in a year but experts believe there should be more aggressive and immediate cuts.

Electricity and gas firms have failed to slash household bills, claiming that there is a lag in the system which means price falls will only filter through next year. With Britons facing the first cold snap of the autumn millions of homes are suffering from record increases in heating bills.

Downing Street acknowledged BP generated much of its profits overseas and that it needed to invest in North Sea oil exploration and production.

A No 10 spokesman said the public would expect to see the oil companies passing on the recent falls in world prices to customers.

"I think oil companies should recognise these are worrying and difficult times for many people and we want the benefits of the price changes to feed through to people who have to pay the bills," the spokesman said. "Their customers will expect answers on when prices are likely to come down."

John McDonnell, Labour MP for the London constituency of Hayes and Harlington, said he would be raising the issue in Parliament. "This is a grotesquely obscene level of profiteering by BP and I will be calling in Parliament for price controls and profit windfall taxes," he said.

Paul Kenny, general secretary of the GMB union, said: "Now we see the result of this speculation with BP enjoying huge windfall profits.The public authorities have got to get a grip and stop this speculation."

Tony Woodley, joint leader of the Unite union, said: "Struggling, worried families will have every right to feel angry that as the temperature plummets, BP's profits rocket.

"A windfall tax on the oil giants would help six million people heat their homes this winter and would send the clear message that profiteering from the basics of life is not just immoral but will not be tolerated by our government."

BP chief executive Tony Hayward said: "Although it has since fallen away sharply, the high oil price of the third quarter obviously helped our absolute result." However, in an attempt to defend the company, he added that despite the boost from record oil prices, BP had also benefited from an improved operating performance.