UK Gas Prices Reach Three-Year High Amid Ongoing Conflict
UK gas prices have reached a three-year high, exceeding 158p per therm on Wednesday. The price surge is attributed to several factors, including the ongoing conflict in Iran and supply-demand constraints due to extreme hot weather pushing up electricity usage.
The UK's reliance on gas for home heating is a concern, with experts warning that wholesale gas prices will continue to impact future energy bills. Jess Ralston, head of energy at the Energy and Climate Intelligence Unit (ECIU), stated: 'This is a result of the UK's continued exposure to high gas prices caused by the war in the Middle East.'
Thomas Pugh, chief UK economist at consultancy firm RSM, suggested that rising energy prices may lead to no change in interest rates from the Bank of England this year. He noted: 'Interest rates are likely to remain on hold this year... and renewed rises in oil and natural gas prices will keep the MPC alert to another inflation surge.'