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UK gas price spike alarmingly

International 23 Sep, 2021 Follow News

The UK fears gas prices will become affordable

The price of gas in the United Kingdom has rocketed in recent weeks, putting several energy suppliers out of business and prompting warnings of food shortages in supermarkets.

Wholesale gas prices have soared by 250 percent since the beginning of the year, including a 70 percent rise since August, according to the Oil & Gas UK trade body.

The gas market is crucial to the UK's energy supply because of its role in heating, industry and power generation.

More than 22 million households are connected to the gas grid. In 2020, 38 percent of the country's gas demand was used for domestic heating, 29 percent for electricity generation and 11 percent for industrial and commercial use.

Global gas demand, COVID lockdowns and last winter’s extremely cold weather are blamed for the huge increase in gas demand.

Speaking on a visit to New York, Prime Minister Boris Johnson admitted there were "a lot of short-term problems" caused by gas supply shortages, but he added: "This is really a function of the world economy waking up after COVID.

"This will get better as the market starts to sort itself out, as the world economy gets back on its feet."

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