On 18 July, the UK, alongside the EU, announced that the Oil Price Cap on seaborne Russian crude oil would be lowered from $60 to $47.60, reducing Russia’s income and ability to fund its war machine.  

The new price cap of $47.60 per barrel comes into effect at 23:01 (BST) today, Tuesday 2 September 2025.   

To support UK businesses, for any trades with an effective date of contract before 23:01 (BST), Tuesday, 2 September 2025 and which are compliant with the previous price cap of $60 per barrel, there is a wind-down period of 45 days ending at 23:01 (BST), Friday, 17 October 2025.  

For any trades with an effective date of contract after 23:01 (BST) today, Tuesday, 2 September 2025, the new price cap of $47.60 will apply.  

OFSI published FAQs 154 to 161 to support industry to adapt to the lower price cap and explain the 45-day wind-down period. Market participants must comply with the usual reporting and attestation requirements imposed by the Oil Price Cap General Licence. 

To read OFSI’s new FAQs, click here  

For the updated Oil Price Cap general licence, click here

For OFSI’s full Oil Price Cap guidance, click here