BREAD and fuel prices could now soar after Russian tanks rolled into Ukraine.
Oil prices yesterday climbed to nearly $100 a barrel – the highest level in seven years – thanks to the ongoing chaos in Eastern Europe.
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Energy and fuel bills could rocket even further as a result of wholesale prices spiking – with fears yet more suppliers could go bust.
And Germany’s decision to slam the brakes on the Nord Stream 2 pipeline is likely to see gas prices in Europe more than double, Russia claimed.
Motoring groups said Vladimir Putin’s reckless incursion will see the price of petrol hit a new record high as early as this week.
Meanwhile, farming bosses sounded the alarm of a possible wheat shortage from the region that produces a third of the global supply – risking supply chaos for bread and beer brewing.
National Farming Union chief, Minette Batters said amid fears war could disrupt their experts: “These two countries produce 30 per cent of global wheat exports.
“What will this mean for global food production, what will this mean for Britain?”
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The wholesale price of gas shot 10 per cent overnight to more than double its peak of December.
Mark Bennett, energy expert at energyhelpline.com cautioned: “If we were to see a sustained spike in gas prices running into the summer, that would inevitably result in the price cap increasing further come October and therefore households paying more.”
Experts predicted that Russia could limit the supply of gas to Europe too as part of their war on the West – and the emergency would last into next year and beyond.
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Jess Ralston, Analyst at the Energy and Climate Intelligence Unit (ECIU) said: “The gas crisis now looks almost certain to last for years, not months.
“The UK’s dependence on gas for heating and power will leave UK bill payers on the hook for Putin’s incursion into Ukraine.”
It came as the RAC motoring group predicted drivers would see an all-time-high of £1.50 a litre of petrol this week.
It would mean the average 55-litre car would cost an eye-watering £82.50 to fill up.
Simon Williams of the RAC said: “This spells bad news for drivers in the UK struggling to afford to put fuel in their cars.”
And more British manufacturers said they planned to hike their prices due to spiralling costs than at any point since 1976.
A poll from the CBI revealed four in five firms expect costs to go up in the next three months.
No10 said last night just three per cent of UK gas comes from Russia, but they will “keep a careful eye” on how sanctions might affect fuel prices.
