The recent escalation in the Middle East has been fast-moving and understandably concerning. Following the joint action by the United States and Israel on Iran which began on 27th February, Iran announced the closure of the Strait of Hormuz, one of the world’s most strategically important shipping routes. Media reports have even suggested threats to block or set fire to ships attempting to pass, which has caused understandable concern in energy markets around the world.
The Strait of Hormuz plays a crucial role in the global energy market, with around 20% of the world’s oil and gas flowing through this narrow waterway each day. Because of its strategic importance, any disruption can have ripple effects across markets, affecting commodity prices and trading patterns worldwide. Events like this naturally attract a lot of attention, and it’s only right that customers who rely on a steady LPG supply want to understand what these developments mean for them.
Image courtesy of BBC News
How this impacts energy prices
Energy markets are complex and often can be unpredictable. Recent global events have highlighted just how sensitive they can be. You may recall that following Russia’s full-scale invasion of Ukraine four years ago, fuel prices initially spiked as markets reacted to fears of supply disruption and consumer uncertainty. The good news is that, over time, prices settled, and since then we’ve enjoyed a relatively stable fuel market – a reminder that initial turbulence does not translate into long-term disruption.
More recently, the attack on Iran has triggered some short-term turbulence across global energy markets. Over the past week, we’ve seen notable increases across several key energy products: crude oil has risen by 11%, natural gas by 55%, propane is up 25%, and kerosene has jumped 55%.
It’s important to emphasise that these changes are driven by global market uncertainty, not by any local supply issues. At Northern Energy, we understand that headlines like this can feel worrying, but our priority is always to keep you informed about what’s happening in the market and to reassure you that your LPG deliveries remain secure, on schedule, and reliable.
What This Means for LPG Customers
LPG pricing is closely linked to global wholesale markets, particularly propane and crude oil. When these commodities see sharp increases, it can create upward pressure on supply costs across the industry. That said, short-term market volatility doesn’t automatically translate into immediate changes at the customer level.
At Northern Energy, we actively manage purchasing and supply arrangements to help cushion the impact of sudden market movements wherever possible. This involves carefully monitoring global commodity trends, negotiating flexible supply contracts, and planning deliveries carefully to minimise the effect of spikes in wholesale markets.
Our goal is simple: to smooth out volatility, protect our customers from abrupt market shocks, and ensure that whether it’s a busy winter month or a period of global uncertainty, your heating and energy needs are always met.
Reassurance on Supply
Most importantly, there are currently no supply constraints. Refineries have confirmed that operations are continuing as normal, and our deliveries from suppliers remain uninterrupted.
At Northern Energy, we take supply security seriously. Our logistics and delivery teams work tirelessly to ensure LPG reaches every home and business on time from our 9 depots throughout England. For householders, this means you can count on having heating and hot water exactly when you need it. For commercial customers, whether you're in processing, hospitality, or any other sector, it ensures operations continue smoothly, without any unexpected interruptions to energy supply.
We also plan proactively for periods of higher demand or potential market volatility By leveraging our industry experience, forecasting capabilities, and supplier relationships, we are able to maintain consistent supply even when global energy markets experience turbulence.
This means that your LPG deliveries remain reliable, predictable, and on schedule.
Our Commitment to You
At Northern Energy, we recognise that energy is more than just a commodity; it’s a vital part of daily life and business operations. Periods of global uncertainty can dominate the news, but our focus remains steady and our priorities clear. We are committed to:
- Fair and transparent pricing, ensuring you understand what you’re paying for, with no hidden surprises
- Reliable, on-time deliveries so you can plan your household or business operations with confidence
- Clear, timely communication, keeping you informed about any developments that could affect your energy supply
- Support when you need it, providing guidance, advice and answers whenever you have questions.
We understand that energy costs are a key part of both household and business budgets, and we take that responsibility seriously. That’s why, even when global markets are volatile, we remain focused on minimising the impact on our customers. Whether it’s through smart purchasing, careful supply management, or proactive planning, our goal is to help you feel secure and supported, and to ensure your energy supply remains are predictable as possible.
Keeping you informed
Energy markets can shift quickly, and we will continue to monitor the situation closely, and keep you updated if anything changes. In the meantime, you can rest assured that your LPG deliveries remain secure, your service will stay reliable, and our team is always here to support you.
In the meantime, if you have any questions, need advice, or simply want to discuss your energy supply, don’t hesitate to contact us. We’re just a phone call or email away.
At Northern Energy, our priority is simple: keeping you fuelled, informed, and confident.