Surging natural gas prices and hyperinflation could see energy costs for consumers hit the $1 trillion mark on the continent, Bloomberg reported.

The figure compares to $500 billion in 2019.

While prior peaks were attributed to rallying oil prices, this peak is principally associated with the rising cost of heating households and powering green plants.

“Consumers and industry across the region are likely going to have to make some tough choices about their energy consumption,” Bloomberg reported, citing Investment Banking firm Citigroup analysts.

Natural gas – which accounts for a quarter of the continent’s energy requirements – saw benchmark prices rise as much as 250 percent last year. Since natural gas is used as a power plant fuel, climbing gas prices are reflected in electricity rates as well.

In addition, lower wind speeds limited green energy output.

Government driven initiatives – such as Sweden’s $664 million package subsidizing power consumers – are being implemented across the continent to ease the pain of skyrocketing energy costs.
Source: Arab News