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Daily Mirror
Daily Mirror
National
Benjamin Lynch

UK affected as Europe gas prices rise after Russia shuts off supply to neighbours

Global market gas prices have risen as Russia turns off supplies to Bulgaria and Poland.

Bulgarian energy minister Alexander Nikolov said the decision to do this was a "political weapon" as a result of the war in Ukraine.

He said: "Because all trade and legal obligations are being observed, it is clear that at the moment the natural gas is being used more as a political and economic weapon in the current war."

Brits are already struggling with tax rises, rising gas bills and tough inflation causing the price of food in shops to go up, so they will be worried by the prospect of gas prices being affected again.

Poland and Bulgaria have had their gas cut off by Russia, impacting the markets (Getty Images/iStockphoto)

Amid the cost of living crisis, the cap for gas bills went up by £693 for the average household in the UK, while petrol prices have already shot to record highs at points.

So will this latest development on the continent affect the UK?

Will UK gas prices go up for people again?

Prices are expected to go up in October 2022 (Getty Images/Tetra images RF)

The October 2022 energy price cap is currently expected to go up again by 32%, according to figures released by analysts at Cornwall Insight.

After the Poland and Bulgaria problem emerged, the price of the wholesale gas contract for immediate delivery has risen nearly 14% to 146.50 pence per therm.

What is clear is that Russia can easily affect the global market as global demand for oil and gas affects the price of fuel in the UK.

However, there are also warmer months ahead and this usually means less usage of gas to heat homes, so demand goes down.

Gazprom said: "Gazprom has completely suspended gas supplies to Bulgargaz (Bulgaria) and PGNiG (Poland) due to non-payment in roubles."

In Europe, gas prices soared by more than a fifth on Wednesday April 27 as the markets reacted to Poland and Bulgaria being cut off.

More recently, petrol prices were given a small break as demand in China seems to have dipped due to a lowering of demand thanks to another outbreak of Covid-19.

How much gas does the UK get from Russia?

Russia can affect the global market prices of gas (via REUTERS)

Russia only provides about 5% of the UK's gas supplies, which gets most of its gas from the North and Irish Seas.

The rest comes from a pipeline across the North Sea from Norway and we also get some from Belgium and the Netherlands.

As a major supplier of gas, Russia can affect prices in the UK even with us getting such a small percentage of it from the Kremlin.

This is because it is a major supplier to Europe, so when supply is cut off, or countries move off it due to sanctions arising from the war in Ukraine, states need to look elsewhere.

This increases demand on other supply lines the UK uses for its own gas, causing prices to go up.

European Commission president Ursula von der Leyen said: "We are prepared for this scenario. We are in close contact with all member states. We have been working to ensure alternative deliveries and the best possible storage levels across the EU."

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