Gas and fuel prices could hit the British as the bloody Russian-Ukrainian conflict continues. Prices are already set to rise for UK residents and further increases will not be welcome news.
Just recently energy limit increased announced, with an average increase of £693 per household coming, forcing the government to introduce measures to try to help struggling Britons, in the form of council tax relief and loans £200 must be returned.
Heavy sanctions – including the shutdown of the Nord Stream 2 pipeline – were called for and implemented when Vladimir Putin declare war with neighboring Ukraine but said measures could trigger retaliation from the Russians, who have power over much of Europe’s gas supplies.
Gas supplies have been limited and have increased costs over the past year; war will only make things worse and especially for countries dependent on Russian gas.
How much gas does Russia supply to Britain?
The UK is in a slightly more fortunate position than other Western European countries as it receives only 3-5% of its gas from Russia and 6% crude oil.
Even so, global gas prices will rise due to shortages from Russia and this directly affects the fuel the UK wants to import from elsewhere.
Russia supplies about 40% of EU natural gas imports, so demand on the continent will increase significantly, forcing Britain to compete for gas.
How much will fuel prices increase?
A Tory MP has warned that fuel prices could rise to more than £1.70 a litre.
Foreign Affairs Committee Chairman Tom Tugendhat told the BBC’s Today programme: “The money still needs to be transferred and the cost of transferring that money still has an effect on the Russian Exchequer.
“Decisions being made across Europe will absolutely shape the way Vladimir Putin sees this, because the reality is that if we let this stand, if we let this pass, you can forget about petrol at £1.70 a litre, that’s where it’s headed. It’s going to be significantly higher.”
How much will gasoline prices increase?
AFP via Getty Images)
It is likely that gas prices will increase due to the conflict.
Gas prices are already more than 280p a can, about seven times higher than last year.
Tom Marzec-Manser, a senior gas specialist at the Independent Commodity Intelligence Service, told The Guardian prices could rise to more than 450p.
“I don’t think it’s unreasonable to believe that the gas market could return to the highs we saw late last year if things escalate to the point where gas supplies are impacted,” he said.
Other factors depend on demand elsewhere in the world and therefore, if Europe can secure an alternative, be it from Qatar or the US in the form of liquefied natural gas (LNG) .
LNG prices are very sensitive and if overseas demand continues to grow in Asia, prices will continue to rise and there have been warnings that it will not be enough to meet global demand.
https://www.mirror.co.uk/money/how-much-russian-gas-uk-26330792 How much Russian gas does the UK use and how much will gas prices go up?