Finance

Fears for petrol and energy prices as oil hits $100 and wholesale gas prices soar after Putin declares war on Ukraine

FEARS have been raised over petrol and energy prices as Putin declares war on Ukraine, with households hit by higher costs.

Russia unleashed a missile attack on Ukraine this morning after months of growing tension between the two nations.

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As Russia launches war on Ukraine, we explain how it will affect prices from petrol to gas
Brits won't have seen the last of price rises as the crisis continues, experts have warned

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Brits won’t have seen the last of price rises as the crisis continues, experts have warned
High petrol and diesel prices are displayed on the forecourt of the M62 motorway Birch service station this morning

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High petrol and diesel prices are displayed on the forecourt of the M62 motorway Birch service station this morningCredit: Getty

Following the invasion this morning:

  • Oil prices surged to over $100 a barrel
  • Wholesale gas prices increased 34%
  • UK’s stock market closed down 3.88%

Price rises will hit households’ already squeezed budgets, from filling up the car to energy bills and getting in the groceries.

Russia is one of the world’s largest producers of oil, and concerns are building over how the Ukraine crisis will impact distribution and price of supplies.

It’s caused global benchmark Brent crude oil to hit $103.19 a barrel – the highest price seen in eight years.

Since the beginning of this year, the price per barrel has surged more than $30.

Warren Patterson, head of commodity research at financial services company ING said costs will continue to soar.

He said: “Prices are likely to remain volatile and elevated.”

🔵 Read our Russia – Ukraine live blog for the very latest updates

Rocketing prices are being passed onto drivers filling up at the pumps.

The Sun reported earlier this week that record high petrol prices were costing drivers nearly £15 extra at the pumps already.

This has gone up even further today.

Petrol across the UK rose to 149.43pa liter on average yesterday, with diesel at 152.83p, according to the AA.

It marks a big rise from costs this time last year when petrol prices stood at 122.50pa liter and diesel 125.99p.

It means that it will cost drivers £82.46 to fill up a 55-litre tank with petrol – £15.08 more expensive than it was this time last year, when it cost £67.38 in total.

And for those filling up the same size tank with diesel, it will cost £84.06 – £14.77 extra since last year, when it cost £69.29.

The RAC has predicted that petrol prices at the pumps could shoot up to £1.70 per liter “very soon”.

Drivers should not stockpile fuel – which could see demand rise, and potentially costs go up even further as a result.

The crisis isn’t only driving up fuel costs – Brits could see their energy bills surge too.

Concerns are growing over whether Russia will decide to restrict the flow of natural gas to Europe as tensions grow, with key pipelines passing through Ukraine from the country.

Fears have been raised that shortages could happen if tensions develop which could drive up prices.

Costs are already on the rise, as wholesale gas prices jumped 34% today to a peak of 347p per therm before closing at 290p.

It is an increase of 87 per cent since Monday.

They are not yet at a record high, which were last seen in December 2021 – but they are higher than normal.

Wholesale gas prices need to be high for a sustained period of time before it will have any impact on the price customers pay.

Brits could also see the price of household staples go up as a result of the crisis.

Farming bosses sounded the alarm of a possible wheat shortage from both regions as they produce a third of the global supply – risking supply chaos for bread and beer brewing.

The energy price cap is due to rise by £693 a year in April from £1,277 to £1,971 before being reviewed again in October.

But if wholesale prices continue to spike then bills could go up again before then, piling more pressure on household budgets.

The UK’s stock market was also shaken by the invasion.

The London Stock Exchange’s leading FTSE 100 index, which tracks the UK’s top 100 firms, closed down 3.88% today.

The impact of the crisis on fuel and energy prices will come as a blow to millions of families whose budgets are already being squeezed due to a cost of living crisis.

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