BP's profit more than doubled in the first quarter as the war in Iran continues and the average price for gasoline hit a new high for the year in the U.S.
The oil and gas industry has been in upheaval since the start of the Iran war in February. A back and forth tussle over the Strait of Hormuz, the narrow mouth of the Persian Gulf that is critical to global oil shipments, has continued for weeks.
Iran offered to end its chokehold on the strait if the U.S.
lifts its blockade on the country and ends the war in a proposal that would postpone discussions on the Islamic Republic’s nuclear program, two regional officials said Monday. But the administration of President Donald Trump seemed unlikely to accept Iran's offer on Tuesday. The White House said Trump’s national security team discussed the offer and Trump would address it later.
BP earned $3.84 billion, or $1.47 per share, for the quarter. A year earlier the London-based oil and gas company earned $687 million, or 26 cents per share.
Stripping out one-time gains, earnings were $1.24 per share, easily topping the 91 cents per share that analysts polled by Zacks Investment Research anticipated.
While BP's profits are climbing, so are gas prices in the U.S.
The average price of gasoline in the U.S. reached $4.18 on Tuesday, according to motor club AAA. The previous high for the year was on April 9, which was the highest since August 2022. A week ago, the average price of gasoline was $4.02, while a month ago the average price was $3.98.
Many individuals complained on social media that they immediately noticed a change in prices at the pump and are concerned about how it will impact their lives.
“Mortgage/Rent/Light bill and gas are so high it takes at least 2 families living in one house to afford to live nowadays,” Teresa Velasquez wrote in a Facebook post.
“Gas prices started coming back down then went right back up.....what happened?” Henry T. Bishop III posted on Facebook.
Last month inflation spiked sharply as March experienced the biggest monthly jump in gas prices in six decades. The surge in gas prices stretches the budgets of lower- and middle-income households as it erodes their incomes, making it harder to afford other necessities such as food and rent.
Those who follow the oil and gas industry are concerned.
“These astronomical profits are a startling reminder that when conflict drives up the price of oil and gas, energy companies profit and households pay. That is not a coincidence, it is a consequence of the way our energy system is structured," Simon Francis, End Fuel Poverty Coalition coordinator, said in a statement.
“Families are being pushed to the brink by spiraling energy bills, while fossil fuel companies turn a war into a windfall. This is not just unjust, it’s unacceptable,” Clémence Dubois, global campaigns director at 350.org, said in a statement.
BP PLC's shares have risen 32% since the beginning of the year. The stock has increased 57% in the past year. Shares are up more than 2% before the market open on Tuesday.
