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.
Read more: Average U.K. Energy Bills Could Hit £3,000 a Year