UK wholesale gas prices hit a record high on Friday (4) amid the Ukraine conflict, adding to worries that annual UK household energy bills could reach £3,000.
On Friday, wholesale gas prices for delivery to UK suppliers jumped to 508p per therm, BBC reported, adding to the concern that high prices for long periods will push up household bills, adding further to the pre-existing cost of living pressures.
Over the past few days, gas prices have been extremely volatile, but the trend has been upwards.
The high came a day after an energy body warned that energy bills could reach as high as £3,000 a year.
Emma Pinchbeck, the chief executive of the energy industry body Energy UK, 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.”
She said that if oil prices remain at elevated levels “you can expect bills to be anywhere between £2,500 and £3,000 in October depending on the tariffs people have and what happens in the market”.
Average UK household energy bills were already a matter of concern as they were supposed to rise to around £2,000 in April when the price cap is increased.
Meanwhile, average petrol prices in the UK reached 155.62p, while the price of diesel reached a record high of 161.28p, showed figures from data firm Experian Catalist.
The UK is less reliant on direct imports from Russia for both oil and gas but since prices are set internationally, a disruption to supplies would impact Britain as well.
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