Real Prices of Energy

Abstract

During the last eight years there have been dramatic increases in the world price of oil. However, the incentive to use less energy comes from increases in the 'real' prices paid by consumers for fuel and the increases in these prices have been far smaller. This note examines the changes since 1973 in real prices for different fuels in different sectors in the UK and compares these price movements with those in some other Western developed countries.