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Oil and gas companies operating in the UK's North Sea are expected to report "near record" income in 2021 and 2022 as the price of energy skyrockets.

Wood Mackenzie analysis says that UK oil and gas operators are projected to record around $ 17bn in cash flow for last year, and approximately $ 18bn this year.

Such amounts were last seen in the boom years before the 2008 financial crash.

the uk's biggest oil and gas group shell announced soaring profits in the fourth quarter of the year because of high gas prices.

and bp boss bernard looney boasted it was a "cash machine" because of the increasing cost of energy.

But an industry representative from Oil and Gas UK rejected the idea, arguing that ordinary tax payments will increase anyway and that a punitive windfall tax would potentially make it more difficult for the industry to invest in the transition to renewables.

uk viewed as one of world for big oil and gas projects.

Energy bills are expected to rise around £700 per household (Image: Getty Images)

This is the total the country's 30million households would pay in extra tax on bills if the energy price cap rises by £700 in April, as analysts have predicted.

The firms claim they did not pay corporate income tax because of tax losses arising in the current and previous years.

PM Boris Johnson is resisting calls to slash the 5 % VAT on dual fuel.

Leader Ed Davey said : "It can't be right that a few fat cats are raking it in."

Jake Berry(R) said the government needed to focus on the cost of living crisis (Image: Getty Images)

Pressure mounted last night for VAT on domestic fuel to be scrapped after it emerged that soaring energy bills could land the Treasury a £1billion 'windfall '.

craig mackinlay, chairman of the net zero scrutiny group of conservative mps, said it would be 'disastrous' for the government to profit from the crisis, adding : 'the chancellor simply can not be seen to accept a windfall.

Reports have suggested ministers are looking at focusing support on the poorest, possibly through an expansion of the means-tested Warm Homes Discount Scheme.

Former Cabinet minister David Jones also backed a VAT cut, saying : 'There are an awful lot of people looking at the likely energy bill increase in April and wondering where the money will come from.

Pressure mounted on the Treasury last night for VAT on domestic fuel to be scrapped after it emerged that soaring energy bills could land a £1billion 'windfall'

The Treasury rejected the idea it would benefit from rising energy prices as bigger fuel bills would leave people with less money to spend on goods that attract higher rates of VAT.

No 10 yesterday rejected the idea of scrapping green levies on bills, saying they were needed to help build a more resilient energy network for the future.

"I do hope as we move beyond the Covid pandemic, the Government's attention will turn very quickly to this pressure on family budgets.

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