The first quarter of the year has proven what we already suspected for the oil and gas industry in 2025: there’s no room for neutral. The beginning of 2025 has set the scene for what will be a make-or-break year. Some years test an industry. Others force it to evolve. 2025 will do both.

For oil and gas companies, the pressure has never been greater.  The oil and gas industry has always been defined by volatility, but 2025 is already a year providing to test even the most seasoned pricing professionals. Crude oil prices are expected to remain relatively stable with periods of significant volatility, supply chain disruptions remain a threat, and industry consolidation is shifting the competitive landscape.

For pricing teams, this means one thing: your pricing strategy isn’t just important, it’s mission-critical.

At Pricefx, we’ve spent over a decade helping oil and gas companies navigate unpredictable market conditions, optimize pricing strategies, and protect margins in an industry where certainty is a luxury. We’ve seen firsthand that the companies that embrace agility, data-driven decision-making, and strategic pricing strategies don’t just survive, they lead.

We know that businesses that take a proactive, data-driven approach to pricing don’t just protect margins. They gain a competitive edge.

This year, three major trends will shape pricing in oil and gas. The companies that adapt their pricing models to these shifts will come out ahead, while those that wait will be left scrambling.

Trend #1: Market Volatility Will Demand Smarter Pricing Strategies

For pricing professionals in oil and gas, 2025 will be a year of rapid shifts and heightened uncertainty. With U.S. crude production expected to rise to 13.6 million barrels per day and global demand growth lagging, the industry faces potential price compression. Meanwhile, geopolitical instability, OPEC+ supply decisions, and fluctuating input costs will keep pricing teams on high alert.

Why Pricing Professionals Need to Act Now

• Oil price fluctuations will challenge margin stability. Companies relying on static pricing models risk losing revenue when costs shift unexpectedly.
• Geopolitical and trade uncertainties will create raw material and freight cost swings. Pricing teams must factor in regional disruptions and cost variations to avoid mispricing.
• Energy policy shifts will drive pricing disparities. The U.S. may ease regulations, while Europe enforces stricter sustainability mandates, leading to diverging cost structures that must be reflected in pricing strategies.

How to Adapt Your Pricing Strategy

• Implement dynamic pricing models that adjust based on real-time cost and market conditions.
• Use AI-driven analytics to anticipate price fluctuations and optimize margins proactively.
• Factor geopolitical risks into pricing strategies to avoid sudden cost shocks.
• Differentiate pricing by region to align with regulatory changes and cost variations.

In 2025, pricing professionals who embrace flexible, data-driven pricing strategies will be best positioned to navigate volatility, protect margins, and maintain competitiveness.

While managing volatility is critical, pricing strategies can no longer be purely reactive. In 2025, companies will need to move beyond traditional cost-plus models and embrace pricing structures that align with customer expectations and perceived value.

This shift toward value-based pricing is already reshaping how organizations price and sell energy products.

Trend #2: Customer-Centricity and the Shift Toward Value-Based Pricing

What’s Happening?

The days of cost-plus pricing as the default model are coming to an end. Customers are demanding more pricing transparency, flexibility, and tailored value propositions.

For years, oil and gas pricing followed a simple formula: cost plus margin equals price. But that is no longer enough. Industrial clients, refiners, and even consumers now expect pricing structures that reflect performance, sustainability, and efficiency gains.

The rise of low-carbon alternatives is accelerating this shift. Companies investing in biofuels, hydrogen, and carbon capture technologies must move beyond standard cost-plus models and establish value-based pricing structures that reflect the economic and environmental benefits of these products.

Why Pricing Professionals Need to Act Now

If your pricing strategy still relies on broad discounting or generic cost-plus models, you are leaving significant revenue on the table. Customers are willing to pay more for innovation, sustainability, and performance, but only if they understand the value.

Key Challenges

• The push for sustainability without clear pricing models as low-carbon products often have higher production costs, but many companies struggle to translate this into premium pricing
• Growing demand for contract flexibility as customers want pricing models that adjust based on usage, efficiency, or performance metrics
• Pressure on discounting strategies as companies that rely on blanket discounts rather than data-driven segmentation risk eroding profitability

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How to Adapt Your Pricing Strategy

• Develop dynamic pricing models that adjust based on customer-specific usage patterns and operational efficiency
• Use data analytics to segment customers and tailor pricing structures based on demand elasticity, product value, and market conditions
• Incorporate sustainability into pricing by clearly communicating the financial benefits of low-carbon solutions to justify premium pricing

Companies that fail to shift toward value-based pricing will struggle to maintain margins in an increasingly competitive market.

Beyond market fluctuations and customer expectations, another pricing challenge is emerging: sustainability. With increasing regulatory scrutiny and the rise of low-carbon alternatives, pricing teams must develop strategies that balance profitability with environmental commitments. Those that fail to price sustainability effectively risk losing both revenue and market position.

Trend #3: Sustainability and Regulatory Shifts Will Demand Pricing Innovation

What’s Happening?

Regulatory and sustainability pressures are no longer a future concern; they are happening now.

In the U.S., environmental policies may ease under a new administration, but in Europe, regulations are tightening. The Corporate Sustainability Due Diligence Directive (set for 2026) will require companies to track emissions across their supply chains.

Meanwhile, demand for low-carbon fuels is rising, but pricing remains inconsistent. In the U.S., oversupply is driving down renewable fuel prices, while in Europe, strong policy incentives are creating pricing advantages.

Why Pricing Professionals Need to Act Now

Sustainability is not just a compliance issue; it is a major pricing challenge. Companies that fail to price their low-carbon products effectively will lose out on potential revenue, while those that miscalculate cost structures could take a financial hit.

Key Challenges

• Varying regional pricing pressures as low-carbon fuels and carbon capture technologies are being priced differently across global markets
• Uncertain long-term incentives as government incentives for renewables can shift, making it difficult to predict profitability
• Inconsistent cost structures as sustainable products often have higher production costs but lack clear pricing models to reflect that value

How to Adapt Your Pricing Strategy

• Develop attribute-based pricing models that highlight the economic benefits of sustainability, such as lower maintenance costs for cleaner-burning fuels
• Monitor global pricing trends to anticipate regulatory-driven price fluctuations
• Incorporate government incentives into pricing structures to maximize profitability
• Educate customers on the value of sustainable products to justify premium pricing

Oil and gas companies that integrate sustainability into their pricing strategy early will be better positioned to capitalize on the transition rather than being forced to react.

With so much change on the horizon, the role of pricing professionals in oil and gas has never been more important. Companies that leverage technology, real-time analytics, and strategic pricing models will gain a competitive edge, while those that stick to outdated methods risk falling behind.

So, what’s the best path forward?

Smart Pricing Is the Key to Success in 2025

Continuing in the way it begun, 2025 will remain a challenging year for oil and gas companies, but it will also present huge opportunities for those who take pricing strategy seriously.

Companies that embrace AI-driven pricing, automated cost adjustments, and integrate sustainability into their pricing models will gain a significant competitive edge.

However, you will need the right tools to get the job done. Oil and gas companies that develop their pricing capabilities and adopt innovative technologies and approaches will be better prepared to operate in this changing environment.

But if you are concerned that it might take forever to get started with pricing software, and have it up-and running, check out this definite guide below to be pleasantly surprised:

Or, on the other hand, talk to one of our knowledgeable and friendly pricing experts now to get started on your SaaS pricing software journey.

Happy Oil and Gas Pricing!