Energy bills could reach £3,000 as oil and gas prices soaron March 3, 2022 at 11:25 am

Oil and gas prices are continuing to soar as Russia’s invasion of Ukraine continues, raising the prospect of households facing even higher fuel and energy bills.

The price of Brent crude oil rose above $119 a barrel to the highest since May 2012, while gas prices rose as well.

Petrol prices have been hitting record highs as the cost of oil soars.

Energy bills are also likely to rise further than previously predicted, trade body Energy UK said.

Emma Pinchbeck, the chief executive of the energy industry body, said: “It’s a really worrying time for both customers and industry.

“We’ve been saying since the autumn that we’d expect bills to go up again in October. With what we’re seeing in Ukraine and in the oil and gas markets, we’re now expecting those to go up further.”

Household energy bills had been expected to go up to around £3,000 per year in October, and will go up to about £2,000 from this April when the price cap is increased.

Ms Pinchbeck said it was “very hard to predict” how much energy bills would go up from October.

“But the important thing is, there is help available, particularly for vulnerable customers, and we are going to be working with government to try and get extra support in place,” she said.

RAC fuel spokesman Simon Williams said average petrol prices were expected to hit fresh record highs as crude oil prices surge.

Russian oil and gas exports are exempted from Western sanctions for now.

But in the trading, banking and shipping sectors there is widespread reluctance to buy Russian commodities.

Russia is the second biggest exporter of crude oil, and is also the world’s largest natural gas exporter.

Ukraine and Russia are also two of the world’s largest wheat producers, and account for nearly a third of global exports.

Exports from the Black Sea have nearly halted amid the invasion of Ukraine and sanctions.

Wheat prices jumped earlier in the week, but fell back on Thursday.