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Those of you that have been paying attention to the news will know that there's been a massive increase in gas prices over the last twelve months. Currently, they sit at a 7-year high, and many places around the world are suffering badly because of it. The question is, do we know why the prices have risen so dramatically? What could possibly be causing it, and will things start to level out and decrease soon?

For consumers, high gas prices mean high energy bills - and the same can be said for commercial energy customers as well. Everyone wants the prices to go down, but here are some reasons why it might take a while:

The C-word

COVID. 

Yes, when you see a problem in the world today, you can almost certainly find COVID at the heart of it. The global pandemic shut industries down around the world last year for almost the entire year. It meant there was less demand for utilities than there were before, and many mining companies couldn't actually go out drilling like before. 

As a consequence, the opening of the world's economy has seen energy demands skyrocket. Think about it, factories and other massive businesses reopened after months away, prompting more demand for gas and energy resources than there had been for a few months. It's meant that there is a shortage of gas throughout the world as the industry tries to keep up with this renewed demand. 

Consequently, many experts believe that the price increase is simply temporary. It's a result of an entire world coming out of lockdown - something we haven't seen for a very long time. It's hard to predict and understand how things will work after a pandemic, but there is hope that, by this time next year, gas prices will be in a more reasonable place. 

A struggle for profits

Similarly, there has undoubtedly been a struggle for profits in the gas industry as of late. In the UK alone, ten energy firms have gone bust because they have struggled to make any money during the global gas shortage. It's costing them too much to mine for gas, and they aren't seeing enough in return. 

Again, there are hopes that this will be a temporary problem. Bigger companies are seeing this happen and making strides to prevent it from happening to them. A lot of them have started implementing new ideas and investing in modern equipment, such as different types of pulleys that are more cost-effective and efficient. Companies are trying to keep their operating costs down, making it easier to make a profit and stay afloat. 

But, it's no surprise that gas prices are soaring if so many energy firms are falling down and crumbling. Those that exist are increasing their prices to cover their backs and avoid suffering from the same fate. 

Primarily, all the problems in the gas world are down to the pandemic. This is what's caused a shortage in the industry, largely thanks to increased demand as the world gets back to something resembling normal. It shouldn't be a permanent price increase, but we will have to wait for gas to get cheaper.