UK Energy Bills Set to Soar Amid Oil Price Surge
UK households are bracing for a potential surge in energy bills as gas prices hit a near four-year high of around 195p per therm. The increase comes on the heels of oil prices surging above $100 a barrel after attacks on Iranian tankers and ongoing fighting in the Middle East.
The price of Brent crude oil rose by nearly 3% to around $100.50 a barrel, its highest level since late July. UK natural gas prices have also risen by about 3%.
Experts warn that rising wholesale energy costs could feed through into consumer energy bills in the winter. Ofgem's energy price cap will rise by 4% in October, and analysts predict it may increase by another 13% in January.
Andrew Goodwin, chief UK economist for Oxford Economics, said, 'The increase in wholesale gas prices has more than offset the saving from the Government removing VAT from electricity bills between October and March.'