According to the BBC, the Department for Business hopes to win support from Prime Minister Boris Johnson for an energy package that will help fuel-intensive industries in times of rising gas prices.

Kwasi Kwarteng, the Business Secretary asked Treasury for assistance to firms affected by rising energy prices on Monday.

These loans could amount to hundreds of millions of Pounds.

According to reports, the Treasury continues to analyze the proposal while Number 10 declined to comment.

According to businesses, they expect a quick response from Treasury.

High energy prices have forced manufacturers to alert consumers to higher prices and pass them on to their customers.

Some companies have indicated that their factories may need to be shut down due to rising prices for gas and electricity.

According to Nick Eardley, BBC political correspondent and BBC political reporter, there are concerns that government could not intervene in factories closing down, and that tens of thousands could be at risk as rising energy prices bite.

After days of discussions with leading figures from the affected industries and a public dispute with Treasury over the status of negotiations between the two departments, Mr Kwarteng made the formal proposal.

It is not common for companies to be supported that are normally competitive. Our correspondent suggests loans instead of grants to help them.

  • Why is gas so expensive?
  • Does the UK face a shortage of natural gas this winter?

While energy-intensive sectors are seeing increased demand, they have not been all affected equally.

Others have short-term agreements to purchase fixed energy prices at long-term rates, while others do not.

Companies have asked for energy prices to be limited, just as households get price caps from regulator Ofcom.

However, this could lead to increased costs for energy suppliers.

In Chancellor Rishi Sonak’s next Budget, which is due to be published on October 27, direct subsidies will increase the tax burden for taxpayers.

You can find many reasons to do so, in both the UK as around the globe.

Many countries have experienced a shortage of energy and gas since they were released from lockdown.

Last year’s cold winter in Europe put additional pressure on gas supplies. As a result, there is less gas stored than usual.

You should also know that the UK does not have as many gas storage facilities as other countries. This means that it has to purchase more wholesale fuel and can be exposed to sudden price hikes.

Asia has also been experiencing an increased demand for liquefied petroleum gas, despite having also had a winter that was cold. There is also a possibility that Russia is cutting its output, an accusation it refutes. This has fueled price increases, according to the law of supply-demand.

These factors have contributed to an increase in gas prices across Europe, Asia, and the UK. They have risen by 250% since January. They have also risen 70% from August.

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Source: BBC.com

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