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Home » Energy Crisis: Rising Gas Prices in UK

Energy Crisis: Rising Gas Prices in UK

Energy Crisis: Rising Gas Prices in UK

Energy Crisis: Rising Gas Prices in UK

The Gas price has been spiking in Britain for 12 months now, affecting household energy bills, and the prospects of higher gas and electricity bills over the coming months is becoming increasingly worrying.

The average price of petrol in the UK has also been fluctuating. During the period 13 December-21 March 2022 this was 1.50

Why Are Energy Prices Rising in Britain?

Energy prices in the UK have been rising since Brexit due to the pandemic and shortages of HGV drivers to deliver fuel to stations. Add to this the Russian invasion of Ukraine and energy prices keep growing on a daily basis.

By far the majority of households in the UK use gas for cooking and heating. Gas prices have been rising steeply as demand grows and supply falls, and consumers have been increasingly unable to pay their bills. Many have had to choose between spending their money on food or on heating their homes. Some businesses have also had to shut down due to spiking gas prices. But why is the price of gas is increasing?

There are six main reasons for this problem:

  • There isn’t enough amount of gas: over the past years, Britain couldn’t save enough gasoline.

Steep Rises in the Price of Gas Affecting the UK

Last October, Britain faced a 12% rise in the price of gas. Rising energy bills in turn have caused inflation, directly affecting livelihoods. Over the past month, two- thirds of adults have complained about the squeeze on household expenditures. This has had a greater effect on the lives of low-income families. The people who have complained about increasing bills have said that they have had to forgo their important expenditures and spend most of their budget on paying energy bills.

Moreover, people had to spend most of their time at home during the pandemic and even work from home. This means that more energy was used as compared to before and people have been forced to tolerate great pressures. According to the National Grid data, the seven-day average price reached highs of 12.8p per kilowatt in December 2021, more than eight times higher than the same period the previous year (1.5p).

The Effects of Gas Prices on the Economy

Gas prices have risen by sixfold in recent months. This has affected the price of electricity as gas is the main source of electricity generation and higher gas price means electricity prices. Market prices and household bills will continue to remain sky-high and unaffordable for some time to come.

Furthermore, this is undermining companies that manufacture fertiliser, steel, glass, and other materials that require a high usage of electricity.

Britain, whose power system depends heavily on gas, is taking some of the hardest blows, creating major headaches for the government of Prime Minister Boris Johnson. He is trying to subsidise fertiliser companies to prevent shut downs and support workers to keep their jobs.

Russia’s invasion of Ukraine is an important crisis, which has raised the price of gas. Russia is a major supplier of gas to Europe and has now been heavily sanctioned by these countries.

Russian President Vladimir Putin is using the energy crisis to achieve his goals. He has said that as soon as European regulators approve the Nord Stream 2 Project, the politically fraught gas pipeline that runs underwater from Russia to Germany, it would “strengthen Europe’s energy security”.

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