How much could your business save?Find out now!
Or, you can call us on:0800 411 8830

What do rising oil prices mean for small businesses?


Oil prices have been rising since mid-March but are still lower than in June last year. What does this mean for small business energy bills?

There was a 6% increase in oil prices in March as traders worried that hostilities in Yemen would disrupt supplies. So far this hasn’t been the case but prices have again increased and the cost of Brent crude oil has gone up by about $9 a barrel in the last six weeks to around $65.

The continuing conflict in Yemen is still playing a part in these price rises. But it’s unlikely they will go back up to the previous levels any time soon.

How are oil prices linked to gas and electricity prices?

Changes in oil prices often dictate changes in gas prices – but why?

Gas is a by-product of oil exploration and production. Over the last few years a number of different sources of gas have emerged including shale gas. But gas prices are still strongly linked to oil prices because of overlap in production and exploration.

Gas prices are linked to electricity prices because gas is used to generate electricity. This means oil prices can have an impact on both business electricity and gas costs.

But business gas and electricity prices haven’t fallen as much as had been hoped as a result of lower oil prices – partly due to government levies on bills.

Now, as economies around the world recover, oil consumption is expected to increase. And when consumption goes up prices can increase. While there’s a glut of oil at the moment, prices aren’t likely to increase rapidly in the short term. But they will start to go up.

What does this mean for small businesses?

If your business energy contract is due for renewal now or over the next few months it’s important to make the most of these lower energy prices.

Use a compare and switch site to find a better deal. Fix your contract and benefit from these lower prices for the next two, three or even four years. Knowing exactly how much your energy will cost will allow you to make better long term decisions.

SwitchMyBusiness.com offers a straightforward solution, cutting bills by up to 70%, with exclusive supplier rates. Thousands of businesses have already saved an average of £747 per switched meter with a call that takes less than five minutes. For an impartial expert option, fill in the form at the top right of this page or call 0800 411 8830

Related Articles

energy news 240217

Energy News – 24/02/2017

What’s been making headlines across the energy world this week? We round up the big stories from the las...

Read More
content calendar download

Free Content Calendar Download

This month we have a free content marketing calendar download for our blog readers and newsletter subscribers....

Read More
Renewable energy sources: what is hydropower?

Renewable energy sources: what is hydropower?

Energy generated by water has been used for thousands of years but only recently to generate electricity. We t...

Read More
Excellent, 9.7 / 10

Great Service

"Jessica Purnell was great, she was helpful and everything was easy. I have saved £150 per month! many thanks Jess :-)"

This review was posted by Melanie Baker on the 23rd of February 2017

Thank you Jess Purnell!

"Jess really helped us out with switching suppliers... she wasn't pushy at all and the service was great. Thanks again!"

This review was posted by Becki on the 23rd of February 2017

Thanks for your help Mark Weeks and Switch My business

"I would like to thank Switch My Business and particularly Mark Weeks for the ease of switching and saving me money! I can highly recommend them. Thanks again Richard Blake"

This review was posted by Richard Blake on the 22nd of February 2017

Aaron Gallagher

"Aaron sorted out a new electricity deal for my church, enabling us to make good savings. We have now received confirmation of our new 3 year plan.During our telephone conversations Aaron was always very polite and efficient. Dawn Marskell"

This review was posted by Dawn Marskell on the 21st of February 2017

Great help switching

"First time I have ever done an energy supplier switch, it seemed a bit daunting but the way EDF has rocketed our industrial energy bill I had no option, Bea Luseni guided me through the process and took all the worry away, many thanks well done"

This review was posted by Horatio on the 17th of February 2017