BP is profiting from war, you are paying the price of that, and this is how to stop that

SUMMARY

Richard Murphy, political economist, examines BP's soaring profits from oil trading during ongoing conflicts involving the USA and Israel, highlighting the impact on UK household energy costs. He proposes targeted taxation measures to curb speculative trading and address wartime profiteering in commodity markets.

MAIN POINTS

• BP's profits have surged due to oil trading during ongoing wars, leading to higher energy costs for households. [0:00]
• Murphy calls for increased taxation on BP's wartime trading profits and proposes a financial transaction tax on commodity trading. [2:02]
• The scale of oil trading in the UK vastly exceeds share trading, with most activity being speculative and contributing to inflation. [4:01]
• Murphy references the Tobin tax, arguing that a financial transaction tax would reduce speculative trading and price volatility. [6:02]
• He addresses political reluctance to regulate commodity markets, citing misinformation and industry resistance as key barriers. [8:00]
• Murphy concludes by urging political action to implement a financial transaction tax and end wartime profiteering by large companies. [10:01]

DETAILED ANALYSIS

BP has reported a dramatic increase in profits for the first quarter of 2026, reaching $3.2 billion, more than double the previous year's figure for the same period. This surge is attributed not to increased oil production or sales but to speculative trading in oil contracts, a practice that has coincided with ongoing conflicts involving the USA and Israel. The resulting volatility in oil prices has directly contributed to rising energy bills and broader inflation in the UK, impacting household budgets and exacerbating the cost-of-living crisis.

Murphy argues that the current economic environment reflects a wartime economy where the costs are socialized—borne by the public—while profits are privatized by corporations like BP.

To address this, Murphy proposes two primary policy interventions. The first is to raise taxes specifically on profits derived from wartime trading, closing loopholes that allow trading activity to be taxed at lower rates than oil production. The second is the introduction of a financial transaction tax on commodity trading, modeled after the UK's existing 0.5% stamp duty on share trades.

He highlights that the volume and value of oil trading in the UK far exceed those of share trading, with 383 million oil trades recorded in 2025, each covering substantial quantities of oil at high prices. Much of this trading is speculative, generating no social value but instead driving up prices and inflation.

Murphy draws on the historical precedent of the Tobin tax, originally proposed in the 1970s to curb speculative financial activity. He contends that even a modest transaction tax on oil and other commodities like wheat, rice, and soybeans would reduce trading volumes, dampen price volatility, and protect consumers. Despite the proven effectiveness of transaction taxes in other markets, political reluctance persists due to a lack of public understanding, industry lobbying, and the influence of major financial institutions.

Murphy concludes that implementing such a tax is a necessary political choice to ensure economic justice and stability for ordinary people, challenging the ongoing policy of permitting wartime profiteering.

LINKS

• Poll for viewers to share their thoughts on the video topic.
• Official website of Tax Research LLP and Richard Murphy's blog.
• ChatGPT prompt and instructions for writing to your MP about the issues discussed.
• Donation page to support Richard Murphy's work.
• Richard Murphy's Bluesky social profile.
• Richard Murphy's Funding the Future blog.
• Introduction video to Richard Murphy's channel.
• The Wealth Series playlist.
• Ecenomics playlist.
• Britain playlist.
• Tax playlist.
• MMT playlist.
• Money playlist.
• Climate Change playlist.
• USA playlist.
• Labour playlist.

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