In China, power shortages are causing lamps to go out and factories to close. In Brazil, the poor must choose between paying for food and paying for energy. German corn and wheat growers are unable to obtain natural gas-based fertilizer. And fears are growing that if the winter is very cold, Europe will be forced to limit electricity.
The globe is in the throes of an energy crisis, with a severe shortage of natural gas, oil, and other fuels needed to keep the global economy going and the lights and heat on in homes. This has resulted in increased utility bills, more expensive items, and growing anxiety over how energy-hungry Europe and China will recover from the COVID-19 pandemic as winter approaches.
The sharpest pinch is on natural gas in Europe, which imports 90% of its supply — primarily from Russia — and where costs have climbed fivefold since the beginning of the year, to 95 euros per megawatt-hour from around 19 euros.
It’s wreaking havoc on the Italian food supply chain, with methane costs anticipated to skyrocket, pushing up the cost of drying wheat by a factor of six. This could eventually raise the price of bread and pasta in shops, but beef and dairy farmers are more vulnerable, as they are compelled to pay more for grain to feed their animals and pass the cost on to customers.
