How is rising gas prices transforming industry?
In recent years, the price of gas has increased significantly, affecting various industrial sectors and domestic consumption. The energy crisis that intensified in 2023, mainly due to the war in Ukraine and the reduction of Russian gas supplies to Europe, caused great volatility in the market, generating concern among companies and consumers.
Fluctuations in the price of gas impact consumers, as since 1 January this year, 40% of the cost of energy is determined in futures markets, where traders must buy energy in advance from the regulated market.
Source of information: Cinco Dias, February 2025.
Gas prices expected to remain high until mid-decade
According to the latest report by Crédito y Caución, gas prices will remain high until the middle of the decade, as global markets still adjust to the reduction in Russian supplies to Europe. This will impact prices in other importing regions, although in Asia the effect will be smaller due to the linkage of many long-term contracts to oil prices.
Global gas demand is also expected to start declining in the second half of the 2020s. In a scenario based on already announced commitments, a reduction of 7% by 2030 and 42% by 2050 compared to current levels is projected.
Source of information: Crédito y Caución, February 2024.
Projections for 2025
Gas prices will continue to rise due to several key factors:
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Reduction in production: Declining gas extraction in key regions has a direct impact on available supply.
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Increasing global demand: As economies recover and demand grows in Asia and Europe, prices will continue to rise.
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Climatic conditions: Cold winters and extreme weather events can increase demand for heating gas, putting further pressure on prices.
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Increase in exports: Large gas producers are prioritising exports to more profitable markets, which makes the product more expensive locally.
Impact on Industry
Industries that depend on gas for their production, heating and power generation processes have been particularly affected. Among the hardest hit sectors are:
Manufacturing & metallurgy
Many companies using furnaces and thermal processes have seen their operating costs skyrocket.
Construction and heating
Heating systems in buildings, offices, hotels and hospitals have seen a sharp increase in costs.
Agribusiness
The production of fertilisers and other gas products has become significantly more expensive.
Transport and logistics
The rise in the price of liquefied natural gas (LNG) has had an impact on the price of freight transport.
The solution: diesel as a viable alternative
Given the uncertainty in the gas market, many companies and consumers have turned to diesel as an alternative. At Inpro, we understand the importance of efficient fuel and HVO transfer systems to keep your facilities running smoothly.
Diesel offers advantages such as:
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Greater stability of supply
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Reduced dependence on volatile international markets
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Consolidated storage and distribution infrastructure
If you are looking for a reliable and efficient solution for your industry or building, at Inpro we can help you implement oil transfer systems that optimise your operation and reduce costs.
For more information about our products
If you have any questions or need more information about our products and offers, you can send an email to info@inprord.com or fill in the following form:
