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Ukraine crisis threatens to dramatically raise cost of living in UK

Ukraine crisis threatens to dramatically raise cost of living in UK
Ukraine crisis threatens to dramatically raise cost of living in UK

Following the deployment of Russian soldiers in eastern Ukraine by President Vladimir Putin, UK officials and analysts have reportedly warned that energy and fuel prices, along with the cost of living, will reach record highs.

Due to Europe's reliance on Russian oil and gas, as well as critical commodities like aluminum and wheat, the possibility of a longer war and harsher western sanctions may drive up prices across the board, just as the nations struggle to recover from the pandemic.

On Tuesday, the RAC had warned motorists that the ongoing crisis will drive petrol prices above the grim threshold of £1.50 per liter. These fuel price hikes come at a time when fuel costs have already reached all-time highs in the nation.

The remarks came as oil prices neared $100 per barrel, the highest price recorded in seven years, and coal and power prices surged owing to concerns regarding supply reliability.

Meanwhile, a record jump in global gas prices during the last six months has prompted Ofgem, the UK's industry regulator to announce an energy price cap hike of 54% beginning in April.

The extraordinary stalemate between the EU and Russia, which produces a tenth of the world's oil as well as 40% of Europe's natural gas imports, will almost certainly result in a cap increase in the near future.

According to AJ Bell investment director, Russ Mould, this is happening as nations sit on record quantities of debt accumulated over the course of the Covid-19 pandemic and deal with high rates of inflation.

Mould added that inflation in the UK is at a 30-year high, and the Bank of England's estimates were made prior to when oil prices reached where they are now, noting that the most concerning trend was the rise in oil prices.

In a written statements for the gas summit, Putin has stated that Russia will maintain the world gas supply.

Source credit: https://www.independent.co.uk/news/world/europe/ukraine-russia-gas-oil-prices-b2020793.html

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.