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

April brought another wave of price drops across gas, power, and oil – but not without volatility. Here’s what happened and what businesses need to know for May.

✅ At a Glance: What Happened in April?

April saw energy prices drop again, with both gas and electricity continuing their downward trend for a second straight month. The month was marked by global trade tensions, tariff surprises, and generally mild weather that kept demand in check.

• 🔻 Gas prices fell ~12% from March
• 🔻 Power prices fell ~10% month-on-month
• ⚖️ Oil prices fluctuated sharply, ending the month lower



🗓️ After a volatile first half of the month, markets calmed slightly—but continued economic worries and geopolitical uncertainty left traders on edge.

📊 Monthly Price Trends (with Chart)

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

Key Takeaways:

• 📉 Early April Drop – Prices tumbled due to trade war escalation and mild weather.
• 🔄 Mid-April Volatility – Conflicting tariff announcements caused large daily swings.
• 🔻 Late April Decline – Markets softened again as storage levels improved and demand stayed low.



✔️ The overall direction remained downward, with both commodities breaking key psychological support levels (gas under 80p/th, power under £80/MWh).

📉 Average Prices vs. March

📦 What Moved the Market?

🔹 Global Trade Tensions

The U.S.–China trade war escalated dramatically this month, triggering new tariffs and fears of a global recession. Markets reacted with:

• 📉 Sharp price drops after China retaliated on 7 April
• 📈 Temporary rallies on rumours of tariff pauses (later denied)

🔹 Mild Weather & Rising Renewables

• Consistently above-average temperatures kept heating demand low.
• Wind generation surged mid-month, easing pressure on gas-for-power demand.
• Storage injections began early and steadily, supporting lower prices.

🔹 Oil Market Swings

Oil saw its biggest one-month drop in years before rebounding late in the month.
Key drivers:

• 🛢️ OPEC+ output announcements
• 🔄 U.S.–Iran sanctions
• 💥 Global economic uncertainty
  

📅 12-Month Market View: Are Prices Falling?

🟦 Graph: Last 12 Months – Gas & Power Prices

Energy prices peaked around the turn of the year but have since trended steadily downward. April marked the second month of consistent declines for both gas and electricity.

• 📈 Late 2024 to Jan 2025: Prices surged amid winter demand and global tensions
• 📉 Since Feb 2025: Clear downward trend – encouraging for businesses



This could represent a key buying window before summer volatility returns.

📈 What This Means for Contracts

🔮 What to Watch in May

• Ongoing tariff tensions – Will trade talks resume or escalate?
• Storage levels – EU is ahead of schedule, but Asia may compete for LNG by summer.
• Middle East developments – Iran and U.S. negotiations continue.
• OPEC+ supply decisions – Further output increases may weigh on oil.

📝 Final Takeaway

April delivered another round of price drops – good news for UK businesses reviewing energy contracts. But while the overall trend is down, uncertainty is still high.



📉 Prices are low, but the market is nervous.
📅 May could be a great time to lock in contracts before demand returns.

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