State support for gas storage is under review as Michael Shanks flags a shortfall after 2030
Ministers are weighing payments for gas storage after a National Energy System Operator warning, while Worldpanel grocery price growth slowed to 2.1 per cent and Fuel Finder letters followed delayed pump-price cuts.
Economics & Markets··Night
Michael Shanks weighs storage payments after a 2030 gas warning
A government consultation found that a high stress scenario could leave homes and businesses in Great Britain without gas from 2030 onward as North Sea reserves deplete, and ministers are now weighing direct financial support for storage sites and pipeline operators. Three-quarters of respondents agreed with the National Energy System Operator warning that the risk could become visible in 2030. Most respondents said the industry was not likely to prepare for low probability, high-impact events in which supplies could run dry. Energy minister Michael Shanks said any form of government intervention or investment in the gas market would be unprecedented and could not be a decision taken lightly, and added that the move away from fossil fuels would not happen overnight. The options under consideration include payments to the owners of gas storage facilities and to pipeline operators to make upgrading and maintaining them economic.[1]
Grocery price growth slows to 2.1 per cent as deals reach 31.3 per cent
Annual grocery price growth in the UK was 2.1 per cent in the four weeks to 9 August, down from 2.6 per cent the previous month and the slowest since October 2024, according to Worldpanel by Numerator. Promotions accounted for 31.3 per cent of supermarket sales, the highest share this year. Average household grocery spending over the four weeks was 410 pounds, 14.24 pounds less than the previous period, after a busy spell during the men's football World Cup in June and July. Heat reshaped the basket: sales of dips rose by nearly a quarter against a year earlier, ice cream and sorbet by 26 per cent and frozen fruit by 48 per cent, and shoppers made an extra 6.2 million trips to the freezer aisle. Separate NielsenIQ research put convenience store sales growth at 3.6 per cent, its strongest in more than a year, and online food sales at 2.1 billion pounds, up 10 per cent in value.[2]
Fuel Finder letters followed delayed diesel cuts
The Competition and Markets Authority said some retailers did not immediately pass on falls in wholesale diesel prices between May and June, and raised concerns about the passive pricing strategies used by most retailers that help keep margins high. Costs at the pump fell in June, but prices remained significantly higher than before the Middle East conflict and retailer margins were at or above the historically high levels of 2025; the authority found no evidence of profiteering tied to the war in Iran. It has sent 1,166 letters and 53 compliance notices to retailers since April over failure to register with the government-run Fuel Finder price comparison scheme, without issuing fines, and about 97 per cent of stations, accounting for roughly 99 per cent of fuel sold, are registered. Chief executive Sarah Cardell said the authority expects any reductions in wholesale prices to be rapidly and fully passed on to drivers. A more detailed review of the road fuel market is planned for the autumn.[3]
