Commodities
UK Domestic Price Cap Hikes 4% Amid Global Gas Turmoil
The UK's domestic price cap is set to increase by 4% from October 1, 2026, according to Ofgem. This quarterly revision affects households on default variable tariffs rather than fixed-price deals.
The regulator attributes the increase to soaring wholesale gas prices on international markets, which stem from the ongoing conflict between the US, Israel, and Iran. The war has disrupted shipping traffic through the Strait of Hormuz, a key route for global liquefied natural gas transport.
Neil Kenward, director general for markets at Ofgem, emphasized that this logistical disruption is beyond the UK government's control and explains most of the increase.