Martin Lewis shares ‘depressing’ food and petrol prices graphs | UK | News
Martin Lewis has drawn a “depressing” parallel between the height of the Russia-Ukraine war and the ongoing conflict in the Middle East. The founder of MoneySavingExpert.com warned that crude oil prices have already risen to just below mid-2022 levels, while the cost of natural gas is also rising rapidly, although below the previous peak. The escalating conflict between Iran, the United States and Israel has caused oil and gas prices worldwide to rise further due to supply disruption linked to Iran blocking the passage of commercial ships through the Strait of Hormuz, a key shipping route.
Mr Lewis said rising oil prices could impact “petrol costs, heating costs and inflationary costs for food as the carrying cost of everything increases”. He noted that higher natural gas prices could also cause UK electricity prices to rise, but the extent of the impact would depend on how long the conflict lasts.
The cost of Brent crude, the global benchmark for oil produced from the North Sea, surpassed $100 (£75) this week; this was the highest level last seen since Russia’s illegal invasion of Ukraine in February 2022.
Natural gas prices also rose after Qatar’s state-backed energy company QatarEnergy stopped producing liquefied natural gas following attacks on its facilities last week.
While the UK imports oil and gas from a variety of locations, not just the Middle East, ongoing disruptions across the Bosphorus are likely to lead to increased demand for alternatives, leading to a rise in energy costs as was the case four years ago.
Analysts at Cornwall Insight said household energy bills could rise by 10% from July due to sharp rises in wholesale gas prices.
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This could see Ofgem’s July-September price cap increased by 10%, or £160, compared to the April cap, but it will continue to depend on how long gas prices stay high.
Balwinder Dhoot, director of growth and sustainability at the Food and Drink Federation (FDF), said it was “too early to say what the full impact of the conflict in the Middle East will be on food and drink in the UK.”
“However, with food producers already under pressure from years of rising operating costs and food inflation running above historical averages, the rise in gas prices looks worrying,” he told the PA News Agency.
He added that food and drink was an “energy-intensive sector” and called for government support to offset the impact of price increases.
