He warned that several aspects of the cost of living could increase
Martin Lewis has issued a worrying update on how the cost of living will be impacted by the conflict in Iran. Oil prices have surged since the USA and Israel launched strikes against the nation.
Specialists are concerned this will have a ripple effect on energy bills and the cost of living, while also driving up prices immediately at forecourts across the country. Mr Lewis recently warned on his BBC podcast that some households are already experiencing a substantial surge in their fuel costs.
Now the money-saving expert has posted some figures on X revealing the rising expenses that could be coming up for consumers. He shared two charts from market price monitoring firm Trading Economics.
One dataset illustrated the price fluctuations for Brent crude oil and the other for UK natural gas, both of which have risen dramatically over recent days. Mr Lewis said: “Two depressing graphs to contrast where we are now with the conflict in the Middle East to the peak of the Russia Ukraine energy crisis.
“The first is the price of oil, which drives petrol costs, heating oil costs, and risks knock on inflationary costs including to food as the cost of transporting anything increases. This isn’t too far from the peak of Russia Ukraine.
“The second is natural gas which is a main driver of UK electricity prices too. Here whilst it’s doubled since the conflict started it is still, at the moment, far short of the Russia Ukraine peak.”
‘Massive profits’ for energy suppliers
He urged caution against overinterpreting the previous week’s data. Mr Lewis explained: “With both though, ultimately the height of the rise is only one factor, just as important is how long it lasts.”
One person replied to the message suggesting the price surge would generate “massive profits” for energy companies. Mr Lewis responded with his perspective on this question.
He said: “For generators and distributors almost certainly, the opposite for retailers which is why we have to hope the stress testing Ofgem did works so we don’t see any go bust.”
A listener to Mr Lewis’ BBC podcast listener said they had noticed a dramatic rise in heating oil costs, which they had narrowly avoided. They explained that a recent order for 1,000 litres of heating oil cost them £645.
The person checked with the same supplier following the outbreak of the Iran conflict, and the cost had more than doubled, soaring to £1,480, with an additional £835 to pay. The listener commented: “We did OK but feel for others who only have oil heaters.”
Following this story, Mr Lewis encouraged those purchasing heating oil to compare prices across different suppliers for potential savings. He suggested you might also secure a lower rate by joining forces with neighbours to buy your heating oil in bulk.
However, Mr Lewis warned that the cost of domestic heating oil naturally rises “immediately” when oil prices go up. He explained: “If you’re unlucky enough to be coming to the end of your tank right now and having to refill it, it is going to be extremely costly. Sadly, barring doing the comparison and collective buying, I don’t have many solutions on that.”
