We are already paying the price of conflict

in Ukraine. The price of petrol (gas to those of you in the US) skyrocketed yesterday. 

Middle Cat was already paying at least $1.73 a litre and had, wisely, filled her vehicle just before it went up to $1.82. Now it looks like heading to over $2.00 a litre.

Why? Well Russia produces around 5% of the world's petroleum apparently.  I knew they produced some but I wasn't sure of how much. I had to look it up. My first reaction was "well 5% isn't that much" and my second reaction was "5% could have a real impact given the way these things are decided". The second reaction was the right reaction it would seem.

I don't understand how the "global oil market" or organisations like "OPEC" work. I just know that the supply is finite and that we use too much of it.

When I was a mere kitten I doubt I ever thought about such things. The Senior Cat would stop at the petrol station and someone would come and fill the tank for him. He would pay them and off we would go again. Now you have to fill the tank yourself and go and pay the cashier. And you pay more for all of this. 

Conflict always has an economic effect. Putin knows that. He also believes that we are the ones who are going to pay. It doesn't concern him if that gas pipeline doesn't get switched on -  yet. He knows it will be at some point in the future and he is almost certainly thinking he will be able to alter the contract so that the price is even higher. We should be concerned about this.

I may use "pedal power" for the most part but there was a carbon imprint involved in making my little vehicle. I also get taken to other places in other people's car. Middle Cat and I had to go somewhere yesterday. It was not accessible by public transport. We used her vehicle. The alternative would have been a taxi. When I buy something it has been delivered to the shop or the supermarket by another vehicle, often a heavy goods vehicle.  If it is manufactured then more fuel is involved and used by people who use fuel...and so it goes on.

I have this nightmare vision of Putin sitting at his desk doodling pictures of oil wells and gloating as he listens to his generals report on the action they have taken during the day. The sanctions are going to have to come much harder and much faster than they are right now. And that 5% needs to be included in the considerations.