SHELL says any windfall tax imposed by the Government on energy companies would not be good news for consumers.

Ministers are said to be considering a one-off tax on suppliers of gas, electricity and fuel in the wake of rising prices and big profits.

But this has been opposed not just by the oil giant – which has a refinery at Stanlow in Ellesmere Port – but by business leaders and local Tories too.

Last week, Shell became the latest of the “big three” energy firms to announce huge profits on the back of soaring oil prices. It said the April to June 2008 profits came in at $7.9 billion (£4 billion), 4.6% up on the same period of 2007.

Supporters of the windfall tax idea say the cash raised could be used to help poorer families who will struggle to pay their bills this winter.

Business Secretary John Hutton told the BBC that ministers were “looking at all options”.

But CBI director Richard Lambert said a windfall tax would ultimately be bad for consumers.

Shell UK (Stanlow) spokesman Edward Brady said: “Windfall taxes are rarely productive.

“If we pay more tax we can make fewer investments. Fewer investments mean fewer supplies of much-needed energy. This cannot be good news for consumers.”

Ellesmere Port’s Tory Parliamentary candidate Stuart Penketh said: “With so many residents in this area dependent on the oil industry, you’d think people would recognise a company needs to make a profit to carry on, allow expansion, and offer stable employment.”

He argued people are struggling with fuel bills due to the current high rate of taxation, and added: “When two thirds of the money paid on the forecourt is going to the government, it would strike me that the best way the Government can help people fill up their car is to cut the fuel duty.

“I’d advise the Government that if they are going to borrow another Conservative policy – please borrow our policy on lowering the fuel duty.”