The average gas price in Great Britain in June 2025 was 86.28 British pence per therm. This was four pence higher than the same month the year prior and follows a trend of increasing gas prices. Energy prices in the UK Energy prices in the UK have been exceptionally volatile throughout the 2020s. Multiple factors, such as a lack of gas storage availability and the large share of gas in heating, have exacerbated the supply issue in the UK that followed the Russia-Ukraine war. This has also led to many smaller suppliers announcing bankruptcy, while an upped price cap threatened the energy security of numerous households. The United Kingdom has some of the highest household electricity prices worldwide. How is gas used in the UK? According to a 2023 survey conducted by the UK Department for Energy Security and Net Zero, 58 percent of respondents used gas as a heating method during the winter months. On average, household expenditure on energy from gas in the UK stood at some 24.9 billion British pounds in 2023, double the amount spent just two years prior.

UK Gas rose to 78.56 GBp/thm on September 1, 2025, up 0.94% from the previous day. Over the past month, UK Gas's price has fallen 7.13%, and is down 15.30% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. UK Natural Gas - values, historical data, forecasts and news - updated on September of 2025.

The price of gas in the United Kingdom was *** British pence per therm in the fourth quarter of 2024. It is anticipated gas prices will increase to *** pence in the second quarter of 2025 before gradually falling to just under ** pence by the second quarter of 2027.
Surging energy costs and the cost of living crisis At the height of the UK's cost of living crisis in 2022, approximately ** percent of UK households were experiencing rising prices compared with the previous month. It was during 2022 that the UK's CPI inflation rate reached a peak of **** percent, in October of that year. Food and energy, in particular, were the main drivers of inflation during this period, with energy inflation reaching **** percent, and food prices increasing by **** percent at the height of the crisis. Although prices fell to more expected levels by 2024, an uptick in inflation is forecast for 2025, with prices rising by *** percent in the third quarter of the year. Global Inflation Crisis The UK was not alone in suffering rapid inflation during this time period, with several countries across the world experiencing an inflation crisis. The roots of the crisis began as the global economy gradually emerged from the COVID-19 pandemic in 2021. Blocked-up supply chains, struggled to recover as quickly as consumer demand, with food and energy prices also facing upward pressure. Russia's invasion of Ukraine in February 2022 led to Europe gradually weening itself of cheap Russian energy exports, while for several months Ukraine struggled to export crucial food supplies to the rest of the World.

The National Balancing Point (NBP), the UK's natural gas benchmark, amounted to 79.68 British pence per therm on July 28, 2025, for contracts with delivery in August. Prices are generally higher in the winter months due to greater gas heating demand, especially in weeks of colder weather. The UK NBP, along with the Dutch TTF, serve as benchmarks for natural gas prices in Europe. Impact on consumer prices and household expenditure post-2022 Fluctuations in wholesale natural gas prices often have immediate impacts on UK consumers. In 2023, the consumer price index for gas in the UK rose to 195 index points, using 2015 as the base year. This increase has translated into higher household expenditure on gas, which reached approximately 24.89 billion British pounds in 2023. This figure represents a 23 percent increase from the previous year and a staggering 91 percent rise compared to two years earlier, highlighting the growing financial burden on UK households. Consumption patterns and supply challenges The residential and commercial sector remain the largest consumers of natural gas in the UK, using an estimated 42 billion cubic meters in 2024. This was followed by the power sector, which consumed about 13 billion cubic meters. The UK's reliance on gas imports has grown due to declining domestic production. This shift has led to an increased dependence on liquefied natural gas imports and pipeline inflows to meet demand.

The average wholesale electricity price in August 2025 in the United Kingdom is forecast to amount to*******British pounds per megawatt-hour, a decrease from the previous month. A record high was reached in August 2022 when day-ahead baseload contracts averaged ***** British pounds per megawatt-hour. Electricity price stabilization in Europe Electricity prices increased in 2024 compared to the previous year, when prices stabilized after the energy supply shortage. Price spikes were driven by the growing wholesale prices of natural gas and coal worldwide, which are among the main sources of power in the region.

… and in the United Kingdom? The United Kingdom was one of the countries with the highest electricity prices worldwide during the energy crisis. Since then, prices have been stabilizing, almost to pre-energy crisis levels. The use of nuclear, wind, and bioenergy for electricity generation has been increasing recently. The fuel types are an alternative to fossil fuels and are part of the country's power generation plans going into the future.

TTF Gas rose to 32.35 EUR/MWh on September 1, 2025, up 2.31% from the previous day. Over the past month, TTF Gas's price has fallen 5.64%, and is down 16.08% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. EU Natural Gas TTF - values, historical data, forecasts and news - updated on September of 2025.

Natural gas fell to 2.97 USD/MMBtu on September 1, 2025, down 0.76% from the previous day. Over the past month, Natural gas's price has risen 1.44%, and is up 36.86% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Natural gas - values, historical data, forecasts and news - updated on September of 2025.

Wholesale electricity prices in the United Kingdom hit a record-high in 2022, reaching **** British pence per kilowatt-hour that year. Projections indicate that prices are bound to decrease steadily in the next few years, falling under **** pence per kilowatt-hour by 2030.

UK Electricity decreased 29.33 GBP/MWh or 28.63% since the beginning of 2025, according to the latest spot benchmarks offered by sellers to buyers priced in megawatt hour (MWh). This dataset includes a chart with historical data for the United Kingdom Electricity Price.

The average monthly price for natural gas in the United States amounted to **** nominal U.S. dollars per million British thermal units (Btu) in July 2025. By contrast, natural gas prices in Europe were about three times higher than those in the U.S. Prices in Europe tend to be notably higher than those in the U.S. as the latter benefits from being a major hydrocarbon producer. Europe's import reliance European prices for natural gas rose most notable throughout the second half of 2021 and much of 2022, peaking at over ** U.S. dollars per million Btu in August 2022. The sharp rise was due to supply chain issues and economic strain following the COVID-19 pandemic, which was further exacerbated by Russia’s invasion of Ukraine in early 2022. As a result of the war, many countries began looking for alternative sources, and Russian pipeline gas imports to the European Union declined as a result. Meanwhile, LNG was a great beneficiary, with LNG demand in Europe rising by more than ** percent between 2021 and 2023. How domestic natural gas production shapes prices As intimated, the United States’ position among the leaders of worldwide natural gas production is one of the main reasons for why prices for this commodity are so low across the country. In 2024, the U.S. produced more than ************ cubic meters of natural gas, which allays domestic demand and allows for far lower purchasing prices.

The industry comprises eight Gas Distribution Networks (GDNs) across Great Britain, owned by four companies operating regional monopolies. Gas distributors are heavily regulated through price control frameworks set by Ofgem in the UK and NIAUR in Northern Ireland to protect consumers. Over the five years through 2025-26, gas distributors' revenue is forecast to decline at a compound annual rate of 0.8% to £5.2 billion. A downward trend in natural gas consumption has weighed on allowed revenue in recent years, though the impact of changing consumption trends has been mitigated by constant investment in GDNs to improve efficiency, which has been reflected by price controls. Soaring wholesale gas prices spurred an increase in shrinkage costs in 2021-22, leading to a cut to operating profitability. Price control adjustments allowed gas distributors to recover these cost increases, spurring a jump in revenue and profitability in 2022-23. These costs continued to be recovered in 2023-24, though declining consumption spurred a dip in capacity income, weighing on revenue allowances during the year. Revenue allowances continued to fall in 2024-25, reflecting a reduction in shrinking costs and adjustments made based on Supplier of Last Resort (SoLR) costs. Revenue is set to record renewed growth of 1.6% in 2025-26, supported by revenue true-ups to ensure that deferred revenue from previous periods is settled before moving on to the next price control period. Looking forward, the rising efficiency of GDNs, the rollout of smart meters and the decarbonisation of the energy system will influence gas distributors' revenue. Over the five years through 2030-31, revenue is forecast to climb at a compound annual rate of 1.2% to reach £5.6 billion. Major investment required to decarbonise GDNs, such as innovations to help displace natural gas with biomethane, will necessitate a boost in revenue allowances. Although specific details are yet to be released, Ofgem’s Sector Specific Methodology Decision (SSMD) indicates a potential increase in the allowed cost of equity for RIIO-GD3, boosting revenue and operating profit. Shrinkage costs are expected to decline as gas leak detection systems continue to improve. This is set to ease pressure on operating profit in the coming years.

Natural gas producers are facing turbulent times. Europe has traditionally relied on Russia and Norway as internal sources of natural gas, while countries such as the US, Qatar and Algeria are major sources of imports (although accounting for a much smaller share of overall consumption). Russia’s invasion of Ukraine has shaken up Europe’s natural gas supply structure, with European governments making efforts to reduce their dependence on Russian gas supplies. Revenue is forecast to swell at a compound annual rate of 16.2% to €113.9 billion over the five years through 2025. Revenue expanded in 2021 and 2022 as a sharp hike in natural gas prices and a post-pandemic rise in demand drove an increase in exploration and production activity. Russia’s invasion of Ukraine led to a spike in natural gas prices, with the impacts of reduced demand for gas and a decrease in Russian gas production outweighed by soaring wholesale prices and heightened demand for other natural gas reserves, spurring a jump in revenue. An ongoing reduction in demand for natural gas and easing prices caused revenue to dip in 2023 and 2024. In 2025, revenue is slated to bounce back by 53.3% owing to geopolitical uncertainties, including trade wars and fresh sanctions on Russia, buoying natural gas prices. Revenue is forecast to rise at a compound annual rate of 2.3% over the five years through 2030 to just under €128 billion. The gas market will continue to be shaped by geopolitical tensions into the medium term, with the International Energy Agency expecting natural gas prices to remain high until 2025 as countries continue to shift their supply structure. Following this, natural gas demand and prices are set to fall as Europe continues to expand its renewables capacity.

Pipeline transport revenue is expected to grow at a compound annual rate of 3.8% over the five years through 2025-26, reaching £1.7 billion. A sharp spike in demand for UK natural gas surged following Russia’s invasion of Ukraine in 2022, with Europe seeking alternatives to Russian supplies, increased throughput in UK pipelines and boosted revenue. Higher gas wholesale prices from supply chain disruptions also ratcheted up revenue, as companies were able to recover higher shrinkage costs. However, despite recent revenue gains, profit has been volatile due to government controls limiting allowed returns. Revenue has started to edge downwards as European countries adapt to the new operating environment and diversify their energy supply chains. Reduced reliance on UK gas has seen throughput volumes return to normal, weighing on revenue. At the same time, tumbling wholesale gas prices, which are down from their peak in 2022, have reduced shrinkage costs for businesses, further constraining revenue. Demand for natural gas is under siege from the green shift to more renewable energy sources. In response, National Gas Transmission and Exolum are among the companies that are adapting to evolving needs by focusing on hydrogen transport infrastructure. Warmer weather and a shift towards more energy-efficient practices further hamper demand for natural gas, burdening throughput volumes. Despite volatile gas demand, demand for petroleum has benefitted from climbing air passenger numbers. Still, revenue is projected to decline by 5.4% in 2025-26, while the average profit margin is slated to nudge down to 36%, reflecting a natural correction following a period of elevated demand. Revenue is forecast to slide at a compound annual rate of 2.3% over the five years through 2030-31 to £1.5 billion. Government net-zero targets and growing environmental consciousness will continue to spur a shift away from natural gas to renewable energy sources, decreasing gas throughput. Meanwhile, the impacts of climate change are expected to rear their heads. Rising global temperatures are likely to lessen the need for domestic heating, weighing on demand for natural gas. Regional water imbalances will become a bigger issue across the UK, prompting businesses to find water transportation solutions. Advancements in technology, namely AI, will shape the future of the industry as companies battle to slash operating costs and facilitate environmentally friendly pipeline transport.

In 2024, the price of natural gas in Europe reached 11 constant U.S. dollars per million British thermal units, compared with 2.2 U.S. dollars in the U.S. This was a notable decrease compared to the previous year, which had seen a steep increase in prices due to an energy supply shortage exacerbated by the Russia-Ukraine war. Since 1980, natural gas prices have typically been higher in Europe than in the United States and are expected to remain so for the coming two years. This is due to the U.S. being a significantly larger natural gas producer than Europe. What is natural gas and why is it gaining ground in the energy market? Natural gas is commonly burned in power plants with combustion turbines that generate electricity or used as a heating fuel. Given the fact that the world’s energy demand continues to grow, natural gas was seen by some industry leaders as an acceptable "bridge-fuel" to overcome the use of more emission-intensive energy sources such as coal. Subsequently, natural gas has become the main fuel for electricity generation in the U.S., while the global gas power generation share has reached over 22 percent. How domestic production shapes U.S. natural gas prices The combination of hydraulic fracturing (“fracking”) and horizontal drilling can be regarded as one of the oil and gas industry’s biggest breakthroughs in decades, with the U.S. being the largest beneficiary. This technology has helped the industry release unprecedented quantities of gas from deposits, mainly shale and tar sands that were previously thought either inaccessible or uneconomic. It is forecast that U.S. shale gas production could reach 36 trillion cubic feet in 2050, up from 1.77 trillion cubic feet in 2000.

Electricity prices in Europe are expected to remain volatile through 2025, with Italy projected to have some of the highest rates among major European economies. This trend reflects the ongoing challenges in the energy sector, including the transition to renewable sources and the impact of geopolitical events on supply chains. Despite efforts to stabilize the market, prices in countries like Italy are forecast to reach ****** euros per megawatt hour by February 2025, indicating persistent pressure on consumers and businesses alike. Natural gas futures shaping electricity costs The electricity market's future trajectory is closely tied to natural gas prices, a key component in power generation. Dutch TTF gas futures, a benchmark for European natural gas prices, are projected to be ***** euros per megawatt hour in July 2025. The reduced output from the Groningen gas field and increased reliance on imports further complicate the pricing landscape, potentially contributing to higher electricity costs in countries like Italy. Regional disparities and global market influences While European electricity prices remain high, significant regional differences persist. For instance, natural gas prices in the United States are expected to be roughly one-third of those in Europe by March 2025, at **** U.S. dollars per million British thermal units. This stark contrast highlights the impact of domestic production capabilities on global natural gas prices. Europe's greater reliance on imports, particularly in the aftermath of geopolitical tensions and the shift away from Russian gas, continues to keep prices elevated compared to more self-sufficient markets. As a result, countries like Italy may face sustained pressure on electricity prices due to their position within the broader European energy market.

Fuel wholesalers have come up against hugely volatile markets in recent years. The COVID-19 outbreak and subsequent travel restrictions and lockdowns led to a standstill in global transport activity, driving a sharp drop in fuel prices and sales in 2020. Air passenger numbers tanked by 73% in the EU in 2020, according to the European Commission, driving a sharp drop off in demand for jet fuel. OPEC+ manipulates world crude oil prices by adjusting production quotas and collaborating with other producers. OPEC+ worked to cut production in early 2021 to raise prices back to their pre-pandemic level, which gave fuel wholesalers a big boost. Then, Russia’s invasion of Ukraine led to a string of sanctions being placed on Russia by the EU and other Western nations, including the UK. Bans on Russian fuel exports drove prices and wholesalers’ revenue through the roof. For example, according to vehicle insurer RAC, the average price of unleaded in the UK shot up by 23.8% between 2021 and 2022. Over the five years through 2024, fuel wholesalers’ revenue is forecast to fall at a compound annual rate of 3.8% to reach €1.1 trillion, including an expected 5.8% tumble in 2024 as supply cuts push prices up. Rising levels of environmental awareness will encourage fuel wholesalers to stock a growing range of low-carbon fuel options like biofuels and hydrogen (when they become more financially viable) in the future. In many European countries, the push to decarbonise transport is accelerating, with electric vehicles gaining ground on petrol vehicles, having already surpassed the market share of diesel vehicles in terms of new car registrations. The long-term fall in investment in oil and gas will also push up prices. Over the five years through 2029, revenue is anticipated to fall at a compound annual rate of 1.3% to reach €1.2 trillion.

Fuel wholesalers have come up against hugely volatile markets in recent years. The COVID-19 outbreak and subsequent travel restrictions and lockdowns led to a standstill in global transport activity, driving a sharp drop in fuel prices and sales in 2020. Air passenger numbers tanked by 73% in the EU in 2020, according to the European Commission, driving a sharp drop off in demand for jet fuel. OPEC+ manipulates world crude oil prices by adjusting production quotas and collaborating with other producers. OPEC+ worked to cut production in early 2021 to raise prices back to their pre-pandemic level, which gave fuel wholesalers a big boost. Then, Russia’s invasion of Ukraine led to a string of sanctions being placed on Russia by the EU and other Western nations, including the UK. Bans on Russian fuel exports drove prices and wholesalers’ revenue through the roof. For example, according to vehicle insurer RAC, the average price of unleaded in the UK shot up by 23.8% between 2021 and 2022. Over the five years through 2024, fuel wholesalers’ revenue is forecast to fall at a compound annual rate of 3.8% to reach €1.1 trillion, including an expected 5.8% tumble in 2024 as supply cuts push prices up. Rising levels of environmental awareness will encourage fuel wholesalers to stock a growing range of low-carbon fuel options like biofuels and hydrogen (when they become more financially viable) in the future. In many European countries, the push to decarbonise transport is accelerating, with electric vehicles gaining ground on petrol vehicles, having already surpassed the market share of diesel vehicles in terms of new car registrations. The long-term fall in investment in oil and gas will also push up prices. Over the five years through 2029, revenue is anticipated to fall at a compound annual rate of 1.3% to reach €1.2 trillion.

Fuel wholesalers have come up against hugely volatile markets in recent years. The COVID-19 outbreak and subsequent travel restrictions and lockdowns led to a standstill in global transport activity, driving a sharp drop in fuel prices and sales in 2020. Air passenger numbers tanked by 73% in the EU in 2020, according to the European Commission, driving a sharp drop off in demand for jet fuel. OPEC+ manipulates world crude oil prices by adjusting production quotas and collaborating with other producers. OPEC+ worked to cut production in early 2021 to raise prices back to their pre-pandemic level, which gave fuel wholesalers a big boost. Then, Russia’s invasion of Ukraine led to a string of sanctions being placed on Russia by the EU and other Western nations, including the UK. Bans on Russian fuel exports drove prices and wholesalers’ revenue through the roof. For example, according to vehicle insurer RAC, the average price of unleaded in the UK shot up by 23.8% between 2021 and 2022. Over the five years through 2024, fuel wholesalers’ revenue is forecast to fall at a compound annual rate of 3.8% to reach €1.1 trillion, including an expected 5.8% tumble in 2024 as supply cuts push prices up. Rising levels of environmental awareness will encourage fuel wholesalers to stock a growing range of low-carbon fuel options like biofuels and hydrogen (when they become more financially viable) in the future. In many European countries, the push to decarbonise transport is accelerating, with electric vehicles gaining ground on petrol vehicles, having already surpassed the market share of diesel vehicles in terms of new car registrations. The long-term fall in investment in oil and gas will also push up prices. Over the five years through 2029, revenue is anticipated to fall at a compound annual rate of 1.3% to reach €1.2 trillion.