"Driving down bills is one of our core cost of living messages. We can't allow them to go back up, even if it involves more support for households. We hope the situation in the Middle East settles but we're planning for all eventualities."
"Oil and gas prices have surged since Donald Trump started his bombing campaign against Iran, which has responded by closing off a crucial shipping route through the strait of Hormuz and by attacking regional energy infrastructure."
"Analysis by the Resolution Foundation earlier this week suggested an energy shock could more than wipe out expected gains in living standards this year."
Oil and gas prices have surged following Donald Trump's bombing campaign against Iran and Iran's closure of the Strait of Hormuz shipping route. Household energy bills remain fixed until July when Ofgem sets the next price cap, with forecasts suggesting a 10% increase adding £160 annually to average bills. Energy Secretary Ed Miliband believes substantial price rises cannot be permitted, particularly as the government claims credit for previous bill reductions. Ministers are planning potential support measures for households if the Middle East conflict continues. The Resolution Foundation warns an energy shock could eliminate expected living standards improvements. Chancellor Rachel Reeves has pledged to protect families from economic turbulence, while rising oil prices have also reduced Bank of England interest rate cut expectations.
#energy-price-crisis #middle-east-conflict-impact #government-intervention #cost-of-living #oil-and-gas-prices
Read at www.theguardian.com
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