Gas price cap uncertainty extended to April 2027

Ofgem has confirmed it will roll forward a temporary approach to the unidentified gas (UIG) allowance for the October to December 2026 price cap period, rather than land a permanent fix in time. For fleets running CNG or LNG-fuelled vehicles, that means another quarter of pricing uncertainty baked into the gas element of the cap. Ofgem

The temporary approach dates back to a decision Ofgem made in August 2025, adopted as a stopgap while a long-term methodology is worked out. That long-term approach won't be ready before the August 2026 cap update either, so Ofgem will apply the temporary methodology again then, with a letter setting out how it's being rolled forward. A consultation on the permanent fix is pencilled in for Summer 2026, drawing on analysis from Xoserve, with Ofgem targeting the April 2027 cap period to finally bed it in. Ofgem

Why this matters: if gas costs feature anywhere in your depot or vehicle fuelling budget, don't assume stability until at least April 2027. Watch for the Summer 2026 consultation - it's the point where the shape of any permanent pricing change, and its cost implications, will start to become clear.