Energy bill warning: Utility prices could rise £1,000 as wholesale oil and gas surge

Martin Lewis urges Rishi Sunak to 'rethink' energy levy

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The prices of gas and oil soared following the news of the invasion. Roger Bird, the head of energy trading and risk at the consultancy Advantage Utilities, warned that prices could rocket if Russia cut Europe off from its gas supplies.

He said: “The worst-case scenario could see wholesale prices far exceed the astonishing spike previously seen around December 2021.”

Martin Young, a senior energy analyst at Investec, warned that if energy prices remain at their current wholesale level British households could face “devastating” rises.

He said: “The jump in electricity and gas prices of recent days has sent our October tariff cap estimate soaring above £3,000.

“This could be devastating for UK households with elevated fuel poverty, and an ‘eat or heat’ dilemma.”

Sarah Coles, a senior personal finance analyst at financial services company Hargreaves Lansdown, said even more people could be pushed into fuel poverty.

She said: “Millions of people have fallen into the fuel poverty gap, and war between Ukraine and Russia could push even more of us over the edge.”

The AA and RAC have warned that petrol and diesel prices will increase further in days as the price of crude oil surged.

The Russian invasion has also pushed wholesale gas prices up 28 percent, which could mean household gas and electric bills go up by £600-£1000 to as much as £3000 a year. 

On Wednesday, petrol and diesel prices reached record highs in the UK.

Unleaded was at nearly 149.5p a litre and diesel at almost 153p, and the RAC said petrol could rise as high as £1.60 a litre.

Globally oil prices are at a seven year high over concerns about supplies from Russia.

Although the UK is not as reliant on Russian gas as other European countries, there are concerns that supplies from Russia could be disrupted pushing prices up across the board. 

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Following the decision of the German government to halt the Nord Stream 2 pipeline former Russian President Dimitri Medvedev warned the price of natural gas could double.

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