Here’s what you need to know:
The US President has caused global markets to experience a rollercoaster few days, including historic falls followed by record rises
Martin Lewis has weighed in on whether energy bills are likely to decrease following the market chaos sparked by US President Donald Trump’s “Liberation Day” tariffs.
The controversial US President’s actions sent global markets into a frenzy, with historic declines followed by record surges.
President Trump initially announced a 90-day pause on most tariffs but is now engaged in a back-and-forth dispute with China, which has been hit with 145% tariffs on all goods.
In a recent update, the White House revealed that tariffs on Chinese-made smartphones and certain other electronics would be shifted to a different levy category.
Martin Lewis explained that the Donald Trump “effect” has led to a decrease in oil and gas prices, which could result in lower energy costs in the future.
However, the founder of MoneySavingExpert.com cautions that prices won’t drop significantly.
The Ofgem energy price cap, which dictates the energy costs for millions of households, is influenced by wholesale energy prices.
Although wholesale energy prices have fallen by approximately 40%, Martin Lewis noted that this doesn’t necessarily mean energy bills will decrease by the same amount.
The price cap is calculated based on average wholesale prices over a three-month assessment period, and the next price cap, set to take effect in July, will be determined by average wholesale prices between mid-February and mid-May, reports the Mirror.
In a video he shared on social media, Martin commented: “If things continue to go down, and the predictions for the worldwide economy worsen, we could see the prices dropping even further.
“But remember, because it’s a three-month average from February to May that dictates the July price cap, even if it drops a lot now, you’ve already got nearly two months’ worth of data in. It won’t have the profound effect you’d think it will.”
The expert pointed out that the energy price cap is revised quarterly, meaning after July, the next update will be in October.
However, Martin noted it’s premature to guarantee reductions in energy prices this winter: “If prices continue to stay low, then it would be the October price cap, and the following January price cap that would be lower.
“Now, currently, it is predicted that we’ll see another drop of about 3% in October, and then it’ll stay about the same in January. But that’s really crystal ball gazing.”
Regarding fixed rate energy tariffs, Martin observed a modest decrease, with the cheapest current fix being around 16% less than the existing price cap, a slight improvement from the previously seen 13% or 14%.
He recommended that people compare prices now and consider fixing their energy costs if possible.
He advised: “You can still fix now far less than you will pay on the price cap, and less than the price cap is predicted to drop.
“So if the predictions are right, you would be far better going onto MoneySavingExpert’s Cheap Energy Club comparison and locking in a fix.
“But there is an ‘if’ on predictions; things could change even more. So just have a look at the early exit penalties if you do fix.”
Published: 2025-04-20 03:30:00 | Author: [email protected] (Kieran Isgin, Levi Winchester) | Source: MEN – News
Link: www.manchestereveningnews.co.uk
Tags: #Martin #Lewis #explains #Donald #Trump #tariff #effects #energy #bills
