Russia’s oil ban will damage the UK economy

As tankers carrying Russian oil, liquefied natural gas, and diesel are turned away from British ports. The implications of the UK’s ban on Russian energy are only now starting to sink in.

Russia's oil ban will damage the UK economy

“The UK is facing a bigger economic shock than the 1973 oil crisis as energy prices soar and the ban on Russian imports is set to pile on more pressure”, Members of Parliament (MPs) warn.

“An economic shock worse than the 1973 oil crisis is looming for the UK amid fears prices could hit $240 a barrel this summer”, MPs said last night.

Russia's oil ban will damage the UK economy
Members of Parliament (MPs) warn of economic crisis

Rocketing inflation – currently 5.5 percent – could leave the average family £1,750-a-year worse off, according to think-tank the Institute for Fiscal Studies.

Meanwhile, the UK Government was yesterday warned that the cost of supporting households with gas and electricity bills could soar by more than £12billion.

Chancellor of the Exchequer Rishi Sunak last month promised to give families a discount on bills.

Russia's oil ban will damage the UK economy
Chancellor of the Exchequer Rishi Sunak

But since war broke out in Ukraine the cost of oil and gas has shot up even more.

The Institute for Fiscal Studies said to give households the same degree of protection as Sunak originally intended.

The UK Government will need to find more than £ 12 billion on top of the original £ 9 billion it had planned to hand out.

This will take the total cost of the package above £ 21 billion.

Russia's oil ban will damage the UK economy

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