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Keir Starmer at today's press conference Alamy Stock Photo
Oil Prices
UK government announces cap on energy bills for next three months due to soaring prices
Starmer confirmed £53 million in support for households most at risk of a surge in cost of living.
LAST UPDATE | 16 Mar
UK PRIME MINISTER Keir Starmer has announced help for households with the cost of living amid the energy price spike caused by the war in the Middle East.
Starmer has announced £53 million – or €61 million – in support for “those households that are most exposed” to rising heating oil prices.
It comes as EU energy ministers gather for talks in Brussels today in response to the Iran war pushing up oil and gas prices.
The UK Labour leader told reporters in the UK today that helping households with living costs is “my first priority” as he announces a subsidy for those who use heating oil to warm their homes.
Starmer also said that energy bills will be capped to the end of June, saving the average household £170 (€196).
“No matter what happens now in energy markets, in three weeks time, your energy bills will be cut and then capped for the next three months,” Starmer said.
The UK government will also give a “legal direction to energy companies to ensure that the entirety of savings made through last year’s budget will “be passed onto customers”.
Starmer also raised concerns about “too many stories” concerning claims that suppliers of heating oil have cancelled orders and then jacked up prices.
“I’m absolutely determined to clamp down on anybody thinking of ripping others off in a situation like this,” he said.
He added that the “quickest way” to bring prices down was to find an end to the US-Israel war with Iran.
EU and Irish moves
For the EU, today’s meeting of energy ministers will lay the groundwork for a Thursday summit, where EU leaders are set to discuss how to help families and businesses deal with soaring energy prices.
EU energy chief Dan Jorgensen last week urged EU governments to lower taxes and levies on energy where possible – but that requires some budget leeway.
As petrol, diesel and home heating fuel remain high, today’s moves in the UK and Brussels are likely to spotlight what the Irish government does in response to the price of petrol, diesel and home heating fuel remaining high.
Speaking to reporters in Philadelphia yesterday during a visit there, Taoiseach Micheál Martin strongly hinted that cuts to excise duty on fuel are being considered.
Reductions in other taxes and levies on fuels, such as excise, would have a far bigger impact on pricing than cutting the carbon tax, Taoiseach Micheál Martin has said.
Some member states retain a large degree of independence from Brussels in influencing retail energy prices, and have already moved to contain the fallout from conflict in the Middle East.
Croatia and Hungary have announced fuel price caps and Greece is to cap profit margins on gasoline.
With reporting by PA, AFP and Christina Finn
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