By Peter McLaren-Kennedy • 25 February 2022 • 11:31
The conflict in the Ukraine has already pushed the gas price as it rises as much as 60 percent in one day, however it has still yet to achieve the pre-Christmas high of 160 euros/MWh.
With the war not likely to end any time soon and with sanctions in place gas prices are likely to remain high in the short to medium term, however there is one good thing that has come out of it which is that the European Union is now firmly committed to building its own sustainable energy supply.
Like so many countries in Europe, roughly 25 percent of Spain’s electricity is generated through plants that use gas to generate electricity pushing the price to the consumer above 240 euros/MWh, a price reversing all the reductions that has been seen this year.
‘The price of raw materials gas skyrocketed early in the morning, mainly in the case of gas finally settling around 40 percent high at 125 euros/MWh after rising more than 60 percent at one point.
The Minister of the Ecological Transition, Teresa Ribera, has said that the energy supply is “guaranteed” , but at the same time warned of rising prices with most households likely to see a sharp increase in their electricity costs again.
She once again called on the EU for “new and powerful” tools to deal with this escalation.
Oil prices are also skyrocketing. The barrel of Brent is above 100 dollars, five percent more than the close of this Wednesday. This price continues to have an impact on the price at the pumps.
The Head of Investment at UBS banking in Spain, Roberto Scholtes explained that with crude oil constantly at 100 dollars (89 euros): “the economy of the euro zone could grow a quarter of a point less this year. However he does rule out an economic recession.
The price of gasoline and diesel have both achieved new historical highs with diesel rising by nearly 10 percent this year and petrol around 7.5 percent.
The war in the Ukraine is not good for consumers with a 60 percent rise in the price of gas likely to remain in place for some time.
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Originally from South Africa, Peter is based on the Costa Blanca and is a web reporter for the Euro Weekly News covering international and Spanish national news.
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