What would other items cost if they increased at the same rate as energy?

Would you pay £500 to fill up your tank, £28 for a cup of coffee or £33 for a pint of beer? The cost of living crisis has impacted almost everything with prices rising across the board but what would other items cost if they increased at the same rate as energy?

The UK is experiencing the highest inflation rate in decades and with household bills under the biggest threat from further price hikes, experts have made comparisons to illustrate just how much gas and electricity costs have jumped in the past year. 

In this article, we’ll outline what other items would cost if they increased at the same rate as energy and how much worse things could get if further financial support isn’t introduced. 

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Fuel

The cost of living crisis has sent the price of fuel spiralling and, just earlier this year, some motorists were spending an eye-watering £100 just to fill up their tank. 

This figure has since fallen, and experts are confident it will continue to drop in the coming months, but, despite making progress, current rates are still 30p more expensive year-on-year.

So, how much would fuel costs have risen had they increased at the same rate as energy? Well, according to industry experts, if the energy price cap had gone ahead, drivers would currently be gearing up to spend anything between £400 and £500 to fill up their tank.

Ofgem Chief Executive, Jonathan Brearly, said: “So, right now, when I look at winter prices, they are 15 times the normal price that led to that £1,000 [average household] bill. To give you an idea, that means to fill your car – if that were happening in petrol – would cost £400-£500 each time.”

This highlights just how much energy prices have skyrocketed in the space of a year and how much more unbelievable the energy price cap seems when applied to other essential items. 

Food 

The supermarket landscape in the UK has faced numerous challenges amidst the ongoing cost of living crisis, including supply chain problems, staff shortages and higher wholesale prices. 

But with higher prices passed onto the consumer, millions of households are already struggling with the impact inflation is having on their purse strings every time they visit the supermarket. 

The average grocery bill has reportedly risen by 11.6% a month (£553 a year) but if food prices had increased in line with energy prices, the situation could be much worse with a cheeseburger costing around £10, a coffee setting you back £28 and a pint of beer coming in at £33. 

So, the next time you’re left shocked at the price of food at a supermarket, restaurant or cafe, just be glad food isn’t increasing at the same rate as energy. 

Housing

The cost of buying and renting a home in the UK has also exacerbated since the cost of living crisis took hold but, if housing prices had risen in line with the energy price cap, how much worse could it be? 

According to industry experts, the price of an average family home in the UK would be over £500,000, almost double the current figure of £283,000.

The last energy price cap increase had a devastating impact on households up and down the country but with rent and mortgage rates also on the rise, there will be a surge in the number of people missing their monthly housing payments this year. 

This could plunge millions more families into debt with the number of UK households in fuel poverty rising more than 50% from 3.16 million in 2019 to 6.32 million in 2022 – 2.5 million of which have children. 

How much worse could energy prices get? 

Prime Minister, Liz Truss, has confirmed that the energy price cap will be capped at £2,500 from October in a move that will save households an average of £1,000 a year. 

This means that the energy price cap, which was on track to surpass £6,000 next year, will be paused until 2024 and won’t increase to £3,549 in October as was originally predicted. 

But energy companies have made it clear that the energy price cap is based on a typical household’s energy usage and households spending more than £2,500 a year can and will face higher annual energy bills. 

UK households will also receive a government-funded grant of £400 paid over the next few months to reduce annual energy bills with low-income families expected to be most positively impacted by the boost.