Iran war set to spark rise in food prices - as Brits face 'awful April' barrage of bills going up
Millions of Brits are facing a series of eye-watering price rises in April, even before the impact of the Iran war is taken into account - with mortgages, bills, council tax and food costs all set to rise, as well as the cost of fuel.
Millions of Brits are facing a series of eye-watering price rises in April, even before the impact of the Iran war is taken into account.
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Many essentials are increasing in price including council tax, and water bills.
The Middle East conflict is also pushing up mortgage rates, fuel prices and energy bills and is likely to soon begin impacting the cost of food.
One of the immediate cost impacts of the war in Britain has been the rising cost of fuel at the pumps, with petrol jumping above 150p a litre last week for the first time in almost two years.
The Isle of Man ran out of diesel yesterday - with deliveries due to arrive tomorrow. Diesel rationing was put in place at multiple petrol stations across the island.
Drivers across the self-governing Crown Dependency reported that all garages have run out of diesel.
One fuel station operator said they believed there was no diesel left anywhere on the island as of this morning.
Petrol prices have gone up by around 17p a litre since the start of the war and diesel prices have gone up by more than 34p.
Most households in England and Wales will see an increase of about 5% on their council tax bills, while in Scotland rates will go up anywhere between 4% to 10%.
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Water bills will go up by an average of £33 per household in England.
Broadband and phone bills are going to increase, as well as the cost of a TV licence - which is rising by £5.50 from April.
From April 1, most drivers will also have to pay more for their car tax - and the long-running exemption for electric cars comes to an end.
Sir Keir Starmer is meeting business leaders including fuel bosses at Downing Street today to address the impact of the Iran war.
He will meet senior representatives from the energy, shipping and financial services industries amid warnings the UK could suffer serious economic damage as a result of the conflict.
Food prices are expected to rise as well due to the war, due to the availability of fertiliser.
Synthetic fertiliser is created using natural gas. The raw material of industrial fertiliser is processed ammonia or ammonia nitrate. As much as 30% of global supply passes through the Gulf and the closure of the Strait of Hormuz is causing prices to increase.
The price of ammonia nitrate was $300 a tonne at the turn of the year and is now nearly $700 a tonne.
With oil prices spiking and Iran continuing to blockade the vital Strait of Hormuz, Britain is now expected to face higher inflation and lower growth.
Petrol prices have already risen sharply, while disruption to the global oil supply has seen some developing countries impose restrictions on fuel usage and sparked concern shortages could spread to the UK.
The government has announced help with energy bills from April 1, and the energy price cap will help households until the start of July.
2.7m people will receive a 4% pay rise from April as both the National Living Wage and National Minimum Wage increase.
The government has also introduced a cap on rail fare increases across England and parts of Wales, as well as keeping prescription medicine under £10 as part of several measures designed to help with the cost of living.
Ministers have consistently played down the possibility of fuel shortages, with Education Secretary Bridget Phillipson telling broadcasters on Sunday that drivers should fill up their cars as normal.
Chancellor Rachel Reeves will join a virtual meeting of G7 finance and energy ministers and central bank governors today along with Energy Secretary Ed Miliband.
Ms Reeves is expected to urge her counterparts to follow the UK's lead and accelerate the transition away from fossil fuels, arguing this is the only way to get off the "rollercoaster" of international oil and gas markets and cut bills for good.
She is also expected to caution against resorting to protectionism as a response to disrupted supply chains and stress the importance of the G7 working together to maintain pressure on Russia, which is set to benefit from the higher oil price.
Earlier in March, Donald Trump eased US sanctions on Russian oil in a bid to reduce pressure on global markets.
In contrast to Ms Reeves's call to move away from fossil fuels, Conservative leader Kemi Badenoch will travel to Aberdeen on Monday to repeat her call for the UK to drill for more oil and gas in the North Sea, a move which most experts believe is unviable.
The Conservatives have also called for a cut in VAT on domestic energy bills and the scrapping of green taxes on power generation, saying these measures will cut bills by £200.
Countries around the world have begun taking measures to protect their populations from price rises.
Australia has announced it will halve fuel duty for the next three months as oil prices surge.
It will mean the average motorist should save around $19AUD on a full tank.