Gas is an essential resource needed for any business enterprise in the UK. Due to the consistently increasing demand for business gas, its prices also soar high.

As for many business owners, the need for gas is inevitable. Thus, finding ways to mitigate the effect of the continuous increase in business gas prices is one of their operational concerns.

Switching suppliers is a great way to save money from using business gas. You can know about the process when you Read More.

Many factors affect business gas prices. Here are the different and common factors that affect business gas prices that you should know:

The price of crude oil

Crude oil drives the prices of gasoline. Ultimately, the crude oil prices affect the gasoline demand and supply. The higher the price of crude oil, the higher the gasoline prices will be in the UK.

The US is one of the many outsourced suppliers of the UK in terms of crude oil and gasoline. So when there is a problem in the US that can drive the prices of crude oil, it affects the supply the UK gets.

The price of refining crude oil into gasoline also increases through the years. The refining of crude oil is necessary to produce gas. The cost of doing so may depend on the type of crude oil, the technology used for the refinery, and the gas requirements of the UK.


Economic growth is the notable factor that moves crude oil and gasoline prices. The greater the economic growth, the higher the demand for crude oil and gasoline. Thus, other economic factors like distribution, transport, and production of these oils to gasoline will also increase in prices. Further, the business gas price passed to UK consumers will be higher.


Many economic indicators can drive the business gas prices of the UK. One of these indicators is the current recession that the whole world is facing. This crisis moves the business gas prices in the world market. The event resulted in volatile and soaring prices of goods and commodities. Unfortunately, it also drives up the prices of petroleum products.

Another crisis that affected the business gas prices in the UK is the Covid pandemic. Since most of the workforce stopped their services during the pandemic, there was a limited gas supply in the country.

The ongoing war is another crisis that affects the business gas prices in the United Kingdom. The Ukraine- Russia war affects the business gas reserves of the UK. Most of the oil and gas supply of Europe comes from Russia. But due to war sanctions, the UK’s oil and gas supply decreased. Further, it affects the business gas prices, making it higher for consumers to pay.



Taxes are a necessary factor in determining business gas prices in the UK.

In the UK, there is a tax for gas called Fuel Duty which is a flat rate of 57.95p per litre for petrol and diesel.

These taxes affect the prices of business gas that consumers pay. Instead of paying for the actual cost of the gas, consumers need to pay taxes, including Fuel Duty and VAT, as part of the price.

The consumers have no choice but to shoulder these extra costs of business gas. Further, legislators are more inclined to levy more gas taxes, and as long as the UK is reliant on gas, business gas prices will also increase.


Another factor affecting the business gas price in the UK is the weather. During extreme weather conditions like winter, the demand for business gas increases.

The wholesale prices for business gas are higher during winter than in summer. It is mainly because business gas is essential for central heating during the cold winter.

Consequently, many people in the UK will need gas to generate energy for heaters for the winter season. The increase in demand will hugely affect the price of the business gas.


The business gas supply becomes limited during hurricanes, typhoons, and other weather disruptions. Extreme weather conditions damage many gas refineries and plants. Thus, it affects the business gas prices in the UK, making consumers pay higher costs.

During this time of the year, you can expect that the price you pay for business gas will be higher than usual. So, if you want to save money during winter, your business can do energy and gas-saving acts.

The level of natural gas stored

The level of gas reserves in the UK affects the business gas prices. The gas stored is necessary as it meets the demand of people for gas.

The gas reserve is essential as the UK’s domestic production cannot meet the demand of all businesses in the UK. When the UK gas demand is beyond high, the stored natural gas will be the one to meet this demand. So when the gas storage level is lower than usual, it may lead to a higher gas price paid by the consumers.

Upon comparison the UK is beyond storage capacity compared to other European countries like Italy, Germany, and France. Consequently, UK consumers will suffer from this lack of gas reserves.

The shift to alternative energy

The fluctuation of business gas prices in the UK may be due to the shift to alternative energy in the country.

The UK pledged to achieve carbon-zero emissions by 2050. With this cause, the country is shifting towards relying on wind energy. However, for the wind to produce electricity, natural gas is a necessary resource to harness it. Thus, driving the changes in prices for business gas.


When the switch to alternative energy is successful, you can expect a change in consumer bills.

The end note

Business gas is a part of every business and household in the UK. With the volatility in prices, saving money can be challenging. That is why switching suppliers is a great business practice in the UK. With a business gas supplier switch, you can help your business spend the correct costs for business gas usage. You can save money from business gas by employing great efforts to mitigate the use of business gas