Six months on from the start of the Middle East conflict, analysis suggests it is adding £190million a week in energy costs for households and businesses, and £183million in fuel bills for drivers.
Energy and fuel costs rise
The US-Israel and Iran conflict, which erupted on February 28, has driven up costs for households and businesses around the world, including thousands of miles away here, not least from a surge in oil and wholesale energy costs.
Energy regulator Ofgem’s energy price cap jumped in July, and will rise by another 4% from October 1. With wholesale costs remaining high, another increase is currently predicted in January, in the depths of winter.
ECIU estimates
Think tank the Energy and Climate Intelligence Unit estimates the energy shock will have cost UK households and firms more than £5billion by the time it fully feeds through into bills next year.
The other major impact has been on fuel prices, with motorists feeling the pain at the pump. The ECIU estimates the war has already cost motorists £4.7billion through higher prices.
It came as the AA reported that petrol prices are back to a three-and-half-year high, now averaging 161.6p a litre nationwide. Diesel, meantime, is back to an average of 183.4p a litre – a level last seen at the beginning of June.
According to the ECIU, for every week the conflict continues, UK gas and electricity users are likely to face a further £190million in excess costs on energy bills. This comes on top of around £183million per week in additional road fuel costs already being seen at the pump, it claims.
Impact on bills and profits
Jess Ralston, head of energy at the ECIU, said: “Yet again, events thousands of miles away are having a direct impact on the cost of living in the UK.
