Energy Crisis Pushes UK Gas Prices to 175p – What It Means for Your Bills

If you've been worried about your energy bills, there's fresh reason for concern. UK gas prices have spiked dramatically following strikes on Middle Eastern energy infrastructure, reaching levels not seen since the conflict began.

**What's happened?**

Fresh military strikes on Iran's natural gas facilities have sent global oil and gas markets into turmoil. Brent crude oil has jumped to $114 a barrel, while UK wholesale gas prices spiked over 25 per cent this morning to 175p per therm – compared to around 80p before the conflict started. That's more than double.

The UK is particularly vulnerable because we import much of our gas as liquefied natural gas (LNG) from the Middle East. When global prices rise, British households feel it quickly.

**What does this mean for your bills?**

Energy suppliers typically fix their wholesale costs over time, so these price spikes don't always feed through to your bill immediately. However, if prices stay elevated, you can expect your next renewal or fixed-rate deal to be significantly more expensive.

The last major energy shock was in 2022, when the average household's annual energy bill jumped by hundreds of pounds. We could be heading for something similar.

**What about mortgages?**

There's another knock-on effect: higher energy costs drive inflation up, which pushes interest rates higher. Mortgage rates have already started climbing – the average two-year fixed rate jumped from 4.83 per cent in early March to 5.3 per cent by mid-March. If you're remortgaging soon, expect to pay around £800 more annually.

**What can you do?**

- **Check your tariff now.** If you're on a variable rate, fix your energy price immediately before rates climb further.

- **Review your budget.** Work out how much extra your energy bills might cost and adjust your household spending accordingly.

- **Look for grants.** The government and energy companies offer support for struggling households – check if you qualify.

- **Contact your supplier.** If you're worried about paying, talk to them early about payment plans.

Monitor the situation closely over the coming weeks. The Bank of England meets today to decide on interest rates – their decision will give us clearer signals about what to expect.

Source: Markets tumble as oil hits $114 a barrel and gas prices soar after fresh strikes on energy sites