The windfall tax on oil and gas firms will be scrapped if prices fall to normal levels for a sustained period, the government has announced.
Halting the windfall tax would cut the overall tax rate on energy firms from 75% to 40%.
A windfall tax is used to target firms which benefit from something they were not responsible for.
It was introduced last year to help fund a scheme to lower energy bills for households and businesses.
Energy firm profits have soared recently, initially due to rising demand after Covid restrictions were lifted, and then because Russia's invasion of Ukraine raised energy prices.
But oil and gas prices have now come down from their highs.