Natural gas rose 20% in a month. And is your energy budget still with January data?
This week's data is clear:
- Natural gas +20% in 30 days
- U.S. crude inventories fell 6 weeks in a row - near operating lows
- Global Energy Index +12% in April alone
This is not distant news. If you manufacture something, if you move cargo, if you operate a plant — your cost of production has already moved. The question is whether your budget moved with it.
We've seen this dozens of times in cost audits: companies that renegotiate energy contracts once a year lose between 8% and 15% of margin without realizing it. The difference between the price you agreed in January and the June spot is money you are giving away.
What can you do this week?
Compare your contracted rate against the current spot in June
Model what happens to your unit cost if gas is still +20%
Check if your freight contracts have a fuel adjustment clause
Most don't. Those who do protect their EBITDA.
When was the last time you opened your energy contract and compared it against the market?
Write to me. This is exactly what we do at ERA Group.
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