Brits facing bigger shock to incomes than in the 1970s oil crisis, Bank of England governor warns

BRITS are facing a bigger shock to incomes than in the 1970s oil crisis, the Bank of England governor said yesterday.

Andrew Bailey’s stark prediction came as experts warned petrol prices could rocket next year as Rishi Sunak plans to push fuel duty back up after a 5p cut.

Mr Bailey told a think-tank event in Brussels: “This really is historic.

“The shock from energy prices this year will be larger than every single year in the 1970s.”

That decade saw eye-watering inflation and a global recession.

Many Brits were forced to use candles for light and cut back on petrol.

There was even talk of a formal return to rationing using vouchers left over from the Second World War.

Millions of households are facing an energy bill hike from Friday and will have to pay almost £700 extra a year.

That's because the energy price cap is rising to £1,971 a year, and experts have predicted it could hit £3,000 when it's reviewed again in October.

Meanwhile, petrol prices are also sky high and drivers have complained that a 5p cut to fuel duty isn't being passed on at the pumps.

The chancellor announced the cut during the Spring Statement last week, in an attempt to bring down the price for consumers.

Richard Hughes, chairman of Treasury watchdog OBR, said pump prices could jump six per cent in 2023 if the Chancellor “superindexes” fuel duty by raising it by two years’ worth of inflation.

Mr Sunak will come under massive pressure to keep tax on petrol down while the crisis goes on.

No10 froze fuel duty for 12 years straight before this year's cut, thanks to The Sun's Keep It Down campaign.