Soaring fuel bills may push 141m more into extreme poverty globally – study

theguardian.com:

Soaring energy prices triggered by the Russia-Ukraine conflict could push up to 141 million more people around the globe into extreme poverty, a study has found.

The cost of energy for households globally could have increased by between 62.6% and 112.9% since Russia’s invasion of Ukraine, according to a modelling study by an international group of scientists published in Nature Energy.

The study modelled the impact of higher energy prices on the spending of 201 groups, representing different expenditure levels, in 116 countries, covering 87.4% of the global population.

Despite efforts by governments to insulate consumers from the price rises, researchers estimated that overall household expenditure rose by between 2.7% and 4.8%.

As a result, they estimate that an additional 78–141 million people worldwide could be pushed into extreme poverty.

One of the report’s authors, Yuli Shan, a professor at the University of Birmingham, said: “High energy prices hit household finances in two ways: fuel price rises directly increase household energy bills, while energy inputs needed to produce goods and services push prices up for those products as well, and especially for food, which affects households indirectly.

“Unaffordable costs of energy and other necessities will push vulnerable populations into energy poverty and even extreme poverty.”

Shan added: “This unprecedented global energy crisis reminds us that an energy system highly reliant on fossil fuels perpetuates energy security risks, as well as accelerating climate change.”

Household gas and electricity bills rose sharply last year, while petrol and diesel prices hit record highs.

A report prepared for the World Economic Forum in Davos last month said soaring prices for energy and