London Daily

Focus on the big picture.
Saturday, Jan 17, 2026

Ukraine invasion: Why the conflict with Russia is leading to higher prices in the UK - and what can be done about it

Ukraine invasion: Why the conflict with Russia is leading to higher prices in the UK - and what can be done about it

There are few conflicts since the world wars that have had the potential to so directly impact the cost of living in Britain.

This terrible war has brought into sharp focus exactly what is meant by the term "energy security".

In short, it's not just about supply, but supply that's affordable - something that's become increasingly strained in the past week.

There are few conflicts since the world wars that have had the potential to so directly impact the cost of living in Britain.

Howard Taylor says the costs of going to work have never been anywhere near as high as they are now


The fact of the matter is, there is a price to be paid here for a faraway conflict, and it's being borne in the homes, on the streets and behind the wheels of this country.

Higher energy bills, higher prices at the pump, higher pressure on us all.

Howard Taylor is a cab driver and has been for the past 35 years. For the first time in all those years he's started thinking about whether there's a line beyond which continuing doesn't make financial sense for him anymore.

"The costs of going to work have never been anywhere near as high as they are now," he says, "and the energy bills are frightening."

"Life is sort of running from one thing to the other and trying to keep costs down on all of them, and struggling."

The forces squeezing him and so many others like him are the soaring prices of oil and gas.

Cuadrilla, the company that undertook fracking in the UK, says the current crisis is a major failing of energy policy and planning


They have both skyrocketed since the invasion, wholesale gas up another 25% just on Tuesday, crude oil at around $106 dollars a barrel.

The UK is beholden to these prices, despite the fact the country doesn't actually buy much oil and gas from Russia directly.

Only about 6% of its oil and 4% of gas comes from Russia. Most of the UK's gas comes from either the North Sea or Norway.

But while Britain only buys a bit, Europe buys a lot - around 40% of its gas supply.

And its centrality to the continent means that any uncertainty or doubt over Russian supply pushes prices right up across the whole market.

The UK's high reliance on gas for energy means these are high prices it has no choice but to pay.

Ecotricity wind farm


The impact will be most keenly felt by households in the form of energy bills.

The Ofgem price cap will protect people to a point, but it is already going up by a record-breaking 54% in April - and the average household's bill will rise to £2,000 a year.

Experts say if the recent rises in gas costs are sustained the price cap will inevitably have to go up again in October, pushing bills to as much as £3,000 a year.

At Brineflow, a leading UK manufacturer of liquid fertiliser, the scale of this business is apparent.


But it will affect people indirectly too, in the price or even availability of food.

There are multiple ways in which this will happen, but a key one is the price of fertiliser.

At Brineflow, a leading UK manufacturer of liquid fertiliser, the scale of this business is apparent.

Tens of thousands of tonnes of the stuff is kept in mammoth tanks, ready for distribution to farms across the country.

But the price of importing it from Europe, where production relies on Russian gas, is crippling. They're building a whole new facility in Sunderland to be more open to global deliveries.

John Fuller says 'we're on the path to the £3 loaf of bread, the £7 pint'


"Prices for nitrogen fertilisers have gone up by 300% or 400% in the last year, and that was without the war," explains John Fuller, Brineflow's chairman.

"So although we may be seen as a small part of the economy, because we're at the start of the food chain, what we pay passes on to farmers and in turn to consumers, it's going to hit everybody in the pocket.

"It means that we're on the path to the £3 loaf of bread, the £7 pint."

So, an already pressing question has now become urgent: how do we reduce our reliance on gas and do it quickly?

Fawley Oil Refinery


Some say the answer lies underground on home soil. Not moving away from gas, but extracting our own - fracking for it in the North of England.

There are vast quantities of shale gas there, but the controversial technology to extract it was banned in the UK in 2019 for safety reasons. It is still undertaken at scale in the US.

Cuadrilla, the company that undertook fracking in the UK says the current crisis is a major failing of energy policy and planning. But it is worth remembering it would sell any gas it fracked on the open market, likely at market prices.

It might not therefore solve the price problem.

But the chief executive rejects this.

"We've got to be able to do it more cheaply than taking shale gas from the United States, putting it on a boat sailing across the Atlantic," says Francis Egan.

"You know, people are saying well, that won't make a difference because it doesn't affect prices tomorrow. But the reason we're in this mess is because we haven't thought about this 10 years ago, which frankly, other countries have been."

The only true shield to all this is alternative energy sources; nuclear, solar or wind. But all are too fledgling to cover the entirety of the demand in this country and scaling up to the amount needed will take years and huge amounts of investment.

UK renewable capacity is up 500% since 2010, but it's still not enough.

The government supports the dual tactic of continuing to back North Sea gas for energy security, while investing in renewables.

But experts say there is another way to reduce our reliance on volatile markets more quickly.

"The immediate step that we can take to reduce our gas demand is by insulating our homes" explains Jess Ralston, an energy analyst at the Energy and Climate Intelligence Unit.

"It's so important that we start talking about insulation, you can go out to B&Q today and get some loft installation, roll it out, and you can save, you know, a hundred pounds or so on your annual bills overnight," he says.

These are complex challenges and ones that some say we haven't planned for adequately enough.

For now, if Russia turned off the taps we'd still be able to turn on the lights.

But at what cost?

Newsletter

Related Articles

0:00
0:00
Close
GDP Growth Remains the Most Telling Barometer of Britain’s Economic Health
Prince William and Kate Middleton Stay Away as Prince Harry Visits London Amid Lingering Rift
Britain Braces for Colder Weather and Snow Risk as Temperatures Set to Plunge
Mass Protests Erupt as UK Nears Decision on China’s ‘Mega Embassy’ in London
Prince Harry to Return to UK to Testify in High-Profile Media Trial Against Associated Newspapers
Keir Starmer Rejects Trump’s Greenland Tariff Threat as ‘Completely Wrong’
Trump to hit Europe with 10% tariffs until Greenland deal is agreed
Prince Harry Returns to UK High Court as Final Privacy Trial Against Daily Mail Publisher Begins
Britain Confronts a Billion-Pound Wind Energy Paradox Amid Grid Constraints
The graduate 'jobpocalypse': Entry-level jobs are not shrinking. They are disappearing.
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
The Return of the Hands: Why the AI Age Is Rewriting the Meaning of “Real Work”
UK PM Kier Scammer Ridicules Tories With "Kamasutra"
Strategic Restraint, Credible Force, and the Discipline of Power
United Kingdom and Norway Endorse NATO’s ‘Arctic Sentry’ Mission Including Greenland
Woman Claiming to Be Freddie Mercury’s Secret Daughter Dies at Forty-Eight After Rare Cancer Battle
UK Launches First-Ever ‘Town of Culture’ Competition to Celebrate Local Stories and Boost Communities
Planned Sale of Shell and Exxon’s UK Gas Assets to Viaro Energy Collapses Amid Regulatory and Market Hurdles
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
×