British Gas announces price cut

22/01/2009

British Gas has responded to calls to cut fuel prices in line with falling oil prices with a ten per cent reduction on gas tariffs.

Consumer groups and the government have been putting pressure on the UK energy industry to roll back prices which were based on the soaring oil costs seen in the summer of last year.

During this period, DERV, petrol and heating oil also rose dramatically.

However, with oil prices and derivatives such as heating oil now more than 100 per cent lower than their July 2008 peak, British Gas has announced the ten per cent cut, which is thought to be of benefit to 7.5 million homes.

"At British Gas we understand energy bills are a significant cost and we are committed to providing the best possible prices for customers," claimed managing director Phil Bentley.

It is the first time that any major UK energy supplier has cut prices since 2007.