Energy bills, petrol and diesel prices set to rise after massive explosion at plant in Europe
A blast at a major European gas plant has killed one person and forced the closure of a key North Sea pipeline. Energy bills and petrol costs for Brits are set to hike as a result of the supply disruption.
BRITS faced a double fuel bill blow last night — with gas and oil prices set to soar.
It followed a blast at a major European gas supply hub and the closure of a key North Sea pipeline.
One person was killed and 18 injured yesterday in the explosion at Baumgarten an der March, Austria — which sparked a huge blaze, above. Hundreds of firefighters fought the flames as the plant near the border with Slovakia was evacuated and shut down.
Gas prices in Europe soared on concerns about supply.
In Britain, gas for immediate delivery rose 35 per cent to 92p per therm — a level not seen since 2013.
Amit Gudka, co-founder of Bulb energy, said: “If wholesale prices stay high then gas bills could increase by three to five per cent.”
A five per cent hike would raise the average UK gas bill by nearly £40 a year.
The blast, caused by a “technical fault”, came a day after it emerged that a crack had forced the closure of the Forties pipeline — which supplies 40 per cent of the UK’s oil and gas. The problem was discovered during a routine inspection south of Aberdeen.
The pipeline is expected to be shut for weeks for repairs. The closure sent Brent Crude above $65 a barrel for the first time since June 2015.
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As a result, petrol and diesel prices at the pumps could rise by as much as 3p a litre in the run up to Christmas according to the RAC.
Its fuel spokesman Simon Williams said: “This closure will inevitably lead to an unwelcome increase.”
The AA says every $2 a barrel move in oil price causes a 1p change at the pumps.