UK Gas Prices Hit Four-Year High as Middle East Tensions Drive Up Energy Costs
The UK's energy crisis worsens as gas prices hit a four-year high and Brent crude oil surpasses $100 a barrel. Traders react to Iranian oil tanker attacks and Middle East tensions, pushing up fuel costs.
Rising wholesale prices could feed into consumer energy bills this winter, with the Ofgem price cap set to rise by 4% in October and potentially another 13% in January. Experts warn of a brutal hike for households already struggling, particularly those using heating oil or on heat networks not covered by the price cap.
The conflict in the Middle East continues to escalate, weighing on hopes of a peace deal and influencing fuel prices. The average price of petrol has increased by 5p a litre in the last week to reach 167.17p, while diesel has risen by the same amount to 188.63p.
Analysts predict a bigger hike to the Ofgem price cap in the new year due to high wholesale prices, which are expected to remain high in the near term. They warn of another winter of rising bills for households and businesses, with some calling on the Government to provide targeted support and back long-term energy efficiency measures.