London CNN —The UK government plans to scrap its windfall tax on oil and gas companies if energy prices fall below certain levels, abolishing a levy that has raised around £2.8 billion ($3.5 billion) since it was introduced a year ago.
The tax helped subsidize the energy bills for millions of UK households and businesses after they soared following Russia’s full-scale invasion of Ukraine.
Energy prices have fallen sharply over the past few months.
UK natural gas was trading at £0.67 ($0.84) per therm, according to Michael Hewson, chief market analyst at stockbroker CMC Markets UK.
There are a number of ways to measure oil and gas prices and the Treasury didn’t specify which prices it would use as a reference for its thresholds.
Persons:
Brent, Michael Hewson, ”
Organizations:
London CNN, UK Treasury, Treasury, CMC
Locations:
North, Ukraine