The Ukraine war raises energy prices in the world - Sadahadhramowt | News

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الاثنين، 20 فبراير 2023

The Ukraine war raises energy prices in the world

London-agencies : 

A new report issued by the journal "Nature Energy" said that the Ukrainian crisis and the resulting increase in energy prices may push about 141 million people around the world into extreme poverty.


Researchers from the Netherlands, the United Kingdom, China, and the United States of America simulated the impact of rising energy prices in 116 countries around the world, and the study showed that household spending on average increased by 4.8 percent, as a result of the increase in coal and natural gas prices, as well as previous increases during the corona pandemic.


In low-income countries, the report showed that poorer households, already facing severe food shortages, were more vulnerable to the negative effects of rising energy costs.


The report showed that households in high-income countries also felt the negative impact of rising energy prices, but the ability of those households to absorb the increase is more likely.


The rise in energy prices due to the crisis in Ukraine necessarily led to an increase in food prices, compared with last year, prices for eggs in the United States increased by 70.1 percent, margarine by 44.7 percent, and butter by 26.3 percent, according to the report.


The prices of flour, bread and sugar also increased by 20.4, 14.9 and 13.5 percent, respectively.


Consumer goods companies deny that prices will fall in the near term.


The report notes that some countries, including high-income countries, are considered more affected by the energy crisis than others, such as Estonia, Poland and the Czech Republic, which are countries with energy-intensive industrial bases.


Poland, in particular, has increased its dependence on coal-fired power generation during 2020, bringing its share of the country's energy mix to 68.5 percent.


On the other hand, the CEO of Nestle, Mark Schneider, the world's largest food manufacturer, said that the prices of food products will continue to rise during the current year.


He explained that the company has been affected by inflation and is trying to repair the damage caused as a result of it, but he did not specify the company's products that will be affected by the price increase, as the company owns about 2000 food products sold around the world.


  

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