Gas is expensive in 2025 primarily due to a combination of reduced supply, increased demand, and geopolitical factors. Key reasons include:

• Reduced supply from traditional sources like Russia, which shut off gas supplies to Europe, and the closure of gas fields in Groningen and the North Sea, limiting available gas and pushing prices higher.
• Increased reliance on expensive liquefied natural gas (LNG) imports, primarily from the United States, which are costlier due to shipping and competition with high-demand regions like Asia.
• Higher taxes and regulatory costs aimed at reducing gas consumption and emissions, such as the mixing with green gas and emissions rights.
• Strong global demand for natural gas, including increased power generation needs and emerging demand from data centers and AI infrastructure, which have expanded natural gas usage.
• Market uncertainties such as geopolitical tensions, refinery production issues, and seasonal effects also contribute to price volatility.

In the U.S., the price of crude oil, refining, distribution, and taxes form the main components of gas prices. OPEC's production decisions and global demand fluctuations also play a major role in crude oil prices, which directly influence gas prices at the pump. Overall, the high gas prices in 2025 are caused by a complex interplay of supply constraints, geopolitical disruptions, growing demand, and regulatory pressures.