Petrol prices in Wiltshire soar as average cost of living hits record highs – live

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Cost of living warnings as sanctions target Russian oil

Experts have warned of the impact that new sanctions on Russian oil and gas imports could have on the cost of living in the UK.

Business Secretary Kwasi Kwarteng announced on Tuesday that the UK would phase out imports of Russian oil and petroleum products by the end of the year, in a decision followed by the US President Joe Biden.

These measures were welcomed by Ukrainian President Volodymyr Zelensky, who said they sent a “powerful signal”.

But the RAC Foundation has warned that petrol prices could hit £1.60 a liter this week in the UK and £1.65 soon after, according to the BBC.

And Robert Buckley, energy analyst at Cornwall Insight, told the BBC that although Britain’s ban is ‘largely symbolic’ as only 8% of its energy comes from Russia, it would likely combine with other factors. and drive up prices.

“This is a global market and you have to replace this misplaced supply somehow,” Mr Buckley told the broadcaster.

“At the margin, this decision will act to support oil prices which are already extremely high.”

Nathan Piper, an analyst at Investec, told the BBC that the EU’s decision to reduce its dependence on Russian gas could have an impact on the UK.

Diesel prices could rise further

Boris Johnson suggested diesel prices could rise further in Britain after the announcement, with pump prices already skyrocketing after Moscow’s attack on Kiev.

But the Prime Minister said the UK was “less exposed” than some European countries when it came to restricting Russian oil – the European Union imports more than a quarter of its oil from Russia.

But Tory MP and former Housing, Communities and Local Government Secretary Robert Jenrick told BBC Newsnight it could be “the toughest economic year we have seen in my lifetime”.

Speaking to broadcasters in London, Mr Johnson agreed that the decision to target Moscow oil would not immediately hit the Kremlin regime as Ukraine continued to face assaults, but said it would be in addition to the “extreme” sanctions already imposed.

The UK imported goods from Russia worth a total of £10.3billion in 2021, according to the Office for National Statistics.

This was equivalent to 2% of the total value of all goods imported from around the world.

No demand for petrol in the UK comes from Russia, nor for heating or fuel oil, but 18% of total demand for diesel comes from Russia, according to the Department for Business, Energy and Industrial Strategy.

Ministers were considering moves that could lead to an overhaul of fracking in the UK after pledging to phase out imports of Russian oil by the end of the year.

Amid concerns over soaring energy costs, it has been heard that two Cuadrilla sites in Lancashire could be handed over to the Royal Geographical Society rather than being concreted.

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