We have seen a substantial drop in energy prices, specifically in the last 4 months. Gas is down 25% and Electricity 20%. You may have already noticed the price drops at the petrol pumps.
Why has this happened?
Global Oil prices impact UK gas and electricity prices almost directly.
As a direct result of COVID19 there was a drop in oil demand. This resulted in the market being over-supplied so the prices were lowered.
In times of over supply, OPEC (Organization of the Petroleum Exporting countries) and Russia usually agree to cut production in order to keep oil prices stable. On this occasion Russia did not agree.
How long will this last?
The length of time that these rates will last is unknown. There are 2 ways in which it could recover:
When the pandemic is over and economies mostly recover.
Further oil product cuts are agreed - this could happen anytime.
Therefore it is important and time critical not to miss out on these low rates.
What should you do?
In the current difficult times, these low gas and electricity prices could help businesses to save money.
If you would like to discuss this with a member of the Wellwood Team call us on 0333 5777 300 or email sales@wellwoodcommunications.com