‘Expect living costs to soar’

Monday 12th May 2008, 11:30AM BST.

LIVING costs in Guernsey could be set to soar during the next two years as experts predict crude oil prices could reach $200 a barrel.

Oil hit $100 for the first time earlier this year and currently stands at a record $122. Analyst Arjun Murti, who correctly predicted three years ago that prices would reach more than $100 a barrel, claimed there is a strong possibility of the cost reaching double that in the next 24 months.

Locally, it would put enormous pressure on services as the island relies heavily on imports. Steve Champion-Smith, director of Huelin-Renouf, said that many products would cost more. ‘We are already very concerned without taking into consideration future predictions,’ he said.