Russia’s invasion of Ukraine has catapulted the price of gas and oil upwards to record levels with households warned that they could soon be paying more than £3,000-a-year to heat their homes. Maybe it’s time to rethink the fracking ban? MailOnline has more.
Today U.K. wholesale gas prices – the price paid by energy companies who serve British households – briefly topped £4.50 per therm – up from £2.50 yesterday morning. It then settled at around £4.
Experts say that if it remains at this price, household gas bills for millions of Britons already squeezed by the cost of living crisis will be in excess of £280-a-month or through £3,000-a-year by the autumn.
The Government’s price cap will go up by £693 on April 1st to £1,970 – but analysts from Cornwall Insight are forecasting an Autumn price cap at £2,497 a year versus – a further rise of £500 in October – even before today’s record price.
The cost of a barrel briefly hit $113-a-barrel today before settling at $111 this morning, the highest price for more than seven years that is expected to force the price of petrol and diesel over £2-a-litre.
The rising cost of buying oil and gas is good news for Putin as it was revealed the West is still paying Russia more than $1 billion-a-day for fossil fuels, an amount that is only going to rise when Europe is so reliant on their supplies.
Russia can use this daily cash injection to subsidise the $15 billion-a-day invasion of Ukraine as his troops remain bogged down after hitting fierce resistance from Volodymyr Zelensky’s heroes.
Millions of households have this week received details of eye-watering energy bill hikes as suppliers prepare to raise charges next month.
Experts are urging customers to keep an eye out for competitive fixed deals amid fears the Russian invasion of Ukraine could drive prices higher.
Last month, energy watchdog Ofgem revealed plans to hike its price cap by 54% for 22 million families on standard tariffs from April 1st. This will push up the cost of the average household bill by £693 to £1,977 a year.