Record highs as Russia destabilizes Ukraine as UK and EU gasoline prices skyrocket

Gasoline prices in the UK and EU have risen to new highs as the crisis in Russia and Ukraine continues to hurt oil prices and could further boost heating costs in Europe.

On February 22, most Five-Eyes countries, some European countries, and Japan attacked Russia with new sanctions to order troops into two separate areas of Donetsk and Lugansk in eastern Ukraine.

The UK is ready to impose further economic sanctions on more Russian banks and individuals, as well as companies in the energy, defense, technology and chemical sectors in the event of a further invasion of Ukraine. He said he was.

Russia is the world’s second largest oil exporter after Saudi Arabia and the world’s top producer of liquefied natural gas (LNG).

The latest soaring gas prices will occur the day after Germany suspends certification of its new gas pipeline, the Nord Stream 2 pipeline, which connects Russia and the country, and puts energy projects on hold indefinitely.

“Welcome to a brave new world where Europeans will soon pay € 2,000 for 1,000 cubic meters of natural gas!” Dmitry Medvejev, former President of Russia and now Vice-Chair of the Security Council He said on Twitter.

The UK gets only 6% of crude oil and 5% of natural gas from Russia, but sanctions could limit global supply and raise fossil fuel prices around the world.

According to the Royal Automobile Club on February 23, gas prices are 149.30p ($ 2.02) per liter ($ 7.65 per gallon) in a warning as fuel pump prices tend to lag behind oil prices. Has risen to.

UK diesel prices have also risen, reaching 152.68 paliters on February 23.

Meanwhile, European natural gas prices rose by more than 10.53 percent at the end of today’s trading. Dutch TTF index..

Wholesale oil and gas prices soared this week after the Kremlin sent troops to two separatist-owned areas of Ukraine to “maintain peace.”

The price of Brent crude, an international benchmark, hit a seven-year high on February 22, surpassing $ 99 (£ 73) before falling the next day.

According to the London Clearing Corporation of the Intercontinental Exchange, the European price of LNG exceeded $ 1,000 per 1,000 cubic meters on February 23, with daily growth exceeding 7%.

According to Bank of England Governor Andrew Bailey, UK energy prices could rise to 70% in the first three months of 2022.

“Looking at the increase in energy prices this year, it’s about twice as big as it was in the 1970s, and it’s huge,” said Ben Brode, Vice President of the World Bank.

Jonathan Haskel, a member of the Bank of England’s Monetary Policy Committee, said UK inflation is currently at its highest level in 30 years at 5.5%, with energy prices accounting for nearly half of that.

The Bank of England expects inflation to reach 7% by the spring when household energy prices are capped in April, well above the bank’s target of 2%.

Many British consumers are already paying high prices for energy and fuel, and demand is skyrocketing following the relaxation of pandemic regulations, but wholesale gas prices have run wild further due to international sanctions on Russia. If so, that number can easily double.

British homes rose another $ 813.28 (£ 600) later this year as a result of the conflict, after prices were already ready to rise by more than $ 406.64 (£ 300) in October before Russia intervened in Ukraine. There is likely to be.

Soaring gas prices have dramatically boosted the cost of living in the UK, while wages have been delayed.

Consumers around the world are also being squeezed by rising commodity prices as companies pass on higher costs of fuel, transportation, and wages due to supply constraints.

In addition to rising energy prices after the UK price cap was lifted in April, businesses, their staff, and self-employed people added an additional 1.25p to National Health Insurance to cover the cost of health and social care. You have to pay. ..

The global stock market rose again on February 23 and then fell again at the closing price after an unstable trading session the day before due to the announcement of sanctions.

The UK’s FTSE 100 was flat, while France’s CAC-40 and Germany’s Dax fell 0.2-0.5%, while the three major US indices were all in the red.

Brian Jung


Brian S. Jung is from New York City and is a resident with a background in the political and legal industry. He graduated from Binghamton University.

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