Russia could pay external debt in roubles; Ukraine’s GDP ‘could shrink 35%’; petrol to surge – business live | Business
UK petrol prices could surge by 50% due to sanctions on Russia cutting oil supplies, MPs have been warned.
This would push the cost of a litre of petrol to £2.40, from around £1.60 today, the Treasury Committee is heard this afternoon.
Dr Amrita Sen, Director of Research at Energy Aspects, told the Treasury Committee that crude prices could rise to $160 per barrel, from around $110/barrel at present, as Russian oil is cut out of the market.
Sen explained that this increase would lead to a 50% increase in retail prices – unless the government introduced any tax changes to lower prices.
Before the Ukraine war, Russia exported around 5 million barrels per day of crude, making it the seond largest exporter after Suadi Arabia.
Nathan Piper, head of oil and gas reseach at Investec, told MPs that if those 5m barrels are removed, oil would rise a lot before demand destruction kicked in.
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