Why are electric and gas bills going up, but oil companies making record profits?

Question

I thought the reason they were increased is so we could get the same power with reduced supply?

However a fair few power companies are reaching ridiculously high record profits, which goes against the grain of that idea.

In: 16

Answer 1

All prices are going up. A company generally marks things up by a percent. So say they upcharge 50% on all goods they sell. If it took them 5$ to make a product they sell it for 7.50 and make 2.50 profit. Now it cost them $10 to make the same product do to inflation, supply chain issues, whatever. Now they add 50% and it cost $15. If they sell the exact same amount of product they would make double the profit