March 2025 UK Energy Market Trends: Gas, Power, and Oil

A clear summary of how gas, power, and oil markets moved in March – and what it means for UK businesses heading into April.

✅ At a Glance: What Happened in March?

March brought a welcome drop in wholesale energy prices for businesses. Both gas and electricity fell compared to February, driven by milder weather, strong supply, and easing geopolitical tension — though uncertainty still lingers.

• 🔻 Gas prices fell ~18% month-on-month
• 🔻 Electricity prices fell ~15.6% month-on-month
• ⚖️ Oil prices dipped early in the month, then rebounded slightly



These lower prices could make April a smart time to explore fixed energy contracts, especially before summer demand or market shocks push rates higher again.

📊 Monthly Price Trends (with Chart)

This chart shows how gas (grey line) and electricity (blue line) prices moved throughout March:

Key Takeaways:

• 📉 Early March Decline – Both markets dropped sharply on mild weather and strong fundamentals.

• 📈 Mid-March Rebound – A brief rally followed strikes on Ukrainian gas infrastructure and colder forecasts.

• 🔁 Late March Stabilisation – Prices levelled off, with gas around 100p/th and electricity around £90/MWh.



✔️ The overall trend in March was downward, though brief volatility remained.

📉 How Prices Changed from February

📦 What Moved the Market

🔹 Weather

• Most of March was milder than seasonal norms, cutting demand.
• A short cold snap mid-month gave prices a temporary lift.

🔹 Supply

• LNG deliveries were steady, and Norwegian exports remained healthy.
• Two UK nuclear plants returned from maintenance, boosting power availability.

🔹 Geopolitics

• Russia–Ukraine ceasefire talks stirred volatility, but no resolution was reached.
• US sanctions and tariffs added further tension, especially for oil markets.
  

📅 12-Month Market View: Are Prices Falling?

Over the last year, energy prices climbed steadily through 2024, driven by tight supply and global uncertainty.

Since February 2025, both gas and electricity have begun to trend clearly downward — a welcome shift for buyers.

• 📈 Mid-2024 to early 2025: Steady rise, with sharp spikes in winter
• 📉 Since Feb: Downtrend, offering potential buying opportunities



📌 If this continues, April may be a great time to secure lower fixed rates before summer volatility kicks in.

📈 What This Means for Contracts

🔮 What to Watch in April

Here’s what we’re watching:

• Will OPEC+ follow through on its planned oil output hike?
• Could colder-than-expected weather return and push up prices again?
• Will Russia-Ukraine ceasefire efforts hold or falter?
• How will US tariffs impact global energy markets?

📝 Conclusion

March delivered some long-awaited relief for business energy buyers, with wholesale gas, electricity, and oil prices all trending lower. While day-to-day volatility remains, the overall direction in recent weeks has been downward — and that presents a valuable opportunity.

With milder weather, stronger supply, and some geopolitical tensions cooling, now could be a smart time to review your contract strategy and consider fixing prices before the market shifts again.

📉 Prices are down — but risks aren’t gone.
📅 April could be a turning point.

📞 Need help making the most of the current prices?

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