The horrific scenes in Ukraine are sending shockwaves across the world, with UK households among those most likely to feel defeated, whether from petrol and energy prices to food and inflation in general
Photo: AFP via Getty Images)
Ukraine is under attack after Russian forces launched an invasion in the early hours of this morning.
But what does the crisis in Ukraine mean for UK households? Here’s everything you need to know.
In what ways will we feel the impact of events in Ukraine?
The horrific scene in Ukraine is sending shockwaves around the world, with UK households among those likely to feel let down, whether from petrol and energy prices to food prices. products and inflation in general.
Why will gasoline prices increase?
Pump prices rose as oil passed $90 per barrel, but the crisis in Ukraine sent oil prices soaring above $100.
Oil prices often quickly roll over to what the driver had to pay at a previous point in time.
The national average for unleaded has been shade below £1.50 a litre, and diesel is well above that.
Experts warn petrol could hit £1.70, or even higher, if oil prices continue to rise.
Will my energy bill increase?
That is less certain than gasoline and depends on how long the conflict continues.
Wholesale energy costs – the largest part of household gas and electricity bills – have been sky-high and are still rising today.
The majority of households are paying for energy prices affected by the price cap of regulator Ofgem.
This cap was increased by more than 50% in April, to an average of almost £2,000, allowing suppliers to reduce their wholesale costs to date.
Any continued increase in those costs could mean the price cap for October, the next time it’s due under consideration, will climb even higher, potentially above £2,300 a year.
There is even a limited risk that could rise before that, likely this summer.
Ofgem recently announced “periodic adjustments” that will only be used in “exceptional cases”.
But it is believed that could include an unexpected jump in the wholesale cost of gas.
Getty Images / iStockphoto)
Will what is happening affect gas supplies to the UK?
Europe gets 40% of its natural gas from Russiaso is very much dependent.
In contrast, the UK receives less than 5%, with Norway being our largest foreign supplier.
But if Europe gets less from Russia then it needs to try to substitute elsewhere, which affects imports into the UK and is one reason why wholesale costs are so high.
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Why might food prices go up?
First, the rise in oil and energy prices affects producers, whether through transportation and production or even packaging costs.
The crisis may even affect the price we pay for a loaf of bread.
Ukraine is the 5th largest wheat exporter in the world and is considered the breadbasket of Europe.
The Russian invasion has seen European wheat futures jump 20% to a current record high.
Will other living costs increase?
Most likely, higher oil, energy and food prices lead to overall inflation.
The UK’s inflation rate stood at a near 30-year high of 5.5% last month.
Experts were getting ready for it to peak at 7% in spring but now say it could rise to 8.2%.
https://www.mirror.co.uk/money/everything-you-need-know-impact-26323595 Everything you need to know about the impact of the Ukraine crisis on UK households