Ireland’s reliance on Russia for gas - Virgin Media News
Daragh Cassidy, Head of Communications at bonkers.ie, appeared on Virgin Media News to discuss the impact a Russian invasion of Ukraine could have on the Irish economy and energy prices.
The Russia-Ukraine crisis
Europe relies on Russia to help heat our homes, turn on our lights, and drive our cars.
As the Russia-Ukraine crisis continues to escalate, we may see a larger increase in our household bills. Many homes are already at boiling point as they try to cope with the rising cost of living.
Russia is the single largest provider of natural gas, crude oil, and solid fossil fuels, but with tensions between Russia and Ukraine increasing, Europe has been looking for other suppliers.
What does this mean for our household bills?
It’s really a case of supply and demand. As Europe is interconnected, there will be a big impact on homes in Ireland and across the continent if Russia decides to turn off the gas taps.
By cutting off gas exports to Europe, Russia will majorly disrupt the supply of oil and gas into Ireland. As a result of this retaliation, demand for these fuels will increase and we’ll see our energy bills rise further.
The other issue as well is that in Ireland we still use gas to generate around 45% of our electricity. When the price of natural gas rises, this impacts household bills.
The rising cost of living
Many everyday costs have been increasing and there have been calls on the Government to rethink the tax burden on things like petrol to ease the burden. We’re hurtling towards paying almost €2 per litre of petrol, which is a huge figure.
The cost of everyday food staples, like pasta and bread, will also rise. With Russia being the largest exporter of wheat, western leaders have threatened Russia with significant economic sanctions if it invades Ukraine.
The Government in Ireland recently announced a €505 million cost of living package to help Irish consumers in a bid to mitigate rising living costs.
Cut your household bills on bonkers.ie
While the ongoing energy crisis is out of our hands, you can try to offset price increases by switching to a cheaper energy deal.
Looking to save more? You’ll be glad to hear that we have a range of other comparison tools that will help put more money back into your pocket. You can compare deals and offers for broadband, banking products, mortgages and insurance.
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Get in touch
Do you think the Ukraine-Russia crisis will further impact our energy bills? Have you managed to offset the energy price increases we’ve seen so far? We’d love to hear from you!