Energy is one of the most important commodities for every country. It directly affects the economy of a country. A slight change in energy prices in a country can contribute to adverse effects on its economy: look at the UK coverage of the recent petrol price hikes as an example of its importance as a commodity. Energy is used in every sector of the economy be it transportation or production industry.
The UK is among the most developed countries in the world. The country has been experiencing a crisis due to the rapid increase in the prices of energy. One question you could be asking yourself is, what causes an increase in energy prices?
There are several factors that have contributed to the increase in energy prices in the UK.
The UK is one of the most developed countries in the world but that does not mean it has stopped developing. The country continues to develop with more industries being developed and modern means of transport. All those consume energy for their operation.
Due to the continued development of the country, there is increasing energy demand. As obvious with every business, an increase in demand for a commodity leads to a hike in prices as many people want to purchase it.
Every country uses energy for various purpose and there are few countries in the world that produces energy. That makes the supply not meet every need. Any commodity that is in limited supply will push the prices to go up.
Shortage Of Storage Space
Storage space for energy requires proper prior preparation and that requires a lot of money. The money is used for such things as excavation and others. That alone scares many investors from investing in the business because not all will have the money for the preparation of the storage space. That limits the amount of energy that can be stored in the country. Since the demand increases, many people will scramble for the little available making the prices go up.
Conflict In Ukraine
The breakdown of conflict in Ukraine affects the supply of energy to other countries leading to its scarcity. That has also contributed to a hike in prices of the energy.
One of the sectors that are directly affected by the change in energy prices is the transportation sector. That is because the energy is directly used in transportation vessels such as cars. With that, UK residents are left wondering whether or not they should be purchasing electric cars.
Despite the increase in energy prices, electric cars still remain the best option due to the following reasons.
Lower Running Cost
The running cost of an electric vehicle is lower compared to an equivalent petrol vehicle. Such vehicles use electricity to charge their batteries instead of a petrol vehicle. If you compare the cost of electricity required by an electric vehicle and the petrol required for a petrol vehicle, you will realize that it is cheaper to still go for an electric vehicle despite the fuel price increase. Also, the cost of electricity can be reduced when a renewable energy source such as solar panels are used to charge the electric car batteries.
Lower Maintenance Cost
A diesel or petrol vehicle has several moving parts that are prone to damage and breakdowns. Such moving parts require constant repair. All that requires a lot of money in the long run. On the other hand, electric cars have few moving parts and therefore less servicing is required. That makes it to be cheaper than the internal combustion vehicle even if fuel prices increase.
One of the things that must be considered alongside cost is the environmental impact. Internal combustion vehicles sometimes emit harmful substances into the atmosphere such as carbon. The best way to reduce the environmental impact is by going for electric vehicles that do not produce any Emissions.
As much are we are interested in saving, we also have to look at the impact it has on peoples’ lives because that is more important than money.
Tax and financial benefits
The registration fees and road tax on buying electric vehicles are less compared to diesel vehicles. Diesel vehicles have a lot of taxes and road policies that must be adhered to.
Electric Vehicles Are Easy To Drive And Quiet
As technology continues to increase, people continue to prefer using gadgets that are easy to operate as compared to some years before. Electric vehicles lack gears which makes them less complicated in operating. You only need to accelerate and break it. Also, charging their battery only requires you to plug into a home or public charger. Additionally, the vehicles are also quiet and that is also an environmental factor as noise is another form of polluting the environment. Petrol vehicles produce noise when in operation and that can make them less preferred.
Written by Stephen Taylor, Propaganda CEO