There is lots of talk of price rises because of Russia invading the Ukraine but is that really what’s going on?
Blokes Losing Timber are interested in quality foods at the right price, so I thought I’d take a look into sources of energy for the UK, reliance on Russia, why prices are rising and profits made by oil companies.
Below is what Google told me…
In 2019, the electricity sector’s grid supply for the United Kingdom came from 43% fossil fuelled power (almost all from natural gas), 48.5% zero-carbon power (including 16.8% nuclear power and 26.5% from wind, solar and hydroelectricity), and 8% imports.
Reliance on Russian fossil fuels. In 2021 imports from Russia made up 4% of gas used in the UK, 9% of oil and 27% of coal. In 2021, imports of gas, oil and coal from Russian to the UK were worth a combined £4.5 billion.
Households are facing a steep increase in their energy prices due to supply and demand on the global wholesale market. This has driven up the amount providers pay for gas and electricity – and that cost is now being passed on to the consumer.
Gas and electricity are becoming more expensive, largely because of rising import costs. The recent increase in the price cap set by Ofgem, the UK’s energy market regulator, saw bills go up for millions of households across the country. In April, gas and electricity bills rose sharply for most households in the UK.
Last year, 28 of the top oil and gas CEOs raked in $394 million in compensation—a nearly $45 million increase since 2020. Shell’s profits were 180 percent higher than in the first quarter of 2021. Shell made $19.3 billion in total profits in 2021. Shell bought back $8.5 billion in stocks for wealthy shareholders.
So it seems, with only 8% of our energy coming from imports, 4% from Russia, then blaming the war in the Ukraine doesn’t really cut it.
Oil prices seem to bounce with the wind according to the graphic above, so why are petrol prices going through the roof? Is it more to do with pressuring us to buy electric cars than anything to do with the markets?
Food companies have to absorb these fuel prices and so they are looking to pass this on, and some are taking the opportunity to make hay while the sun shines? We choose what we pay for based on our own criteria… do we stick with the brands or go for the cheaper, own label products?
Probably time for some new brands to shine because they offer a great balance of dietary needs, great taste and low prices.
What have you replaced in your shopping basket? Give us some ideas…