The reductions are being made following global reductions in oil prices. In recent weeks the average cost of a barrel of crude oil has fallen to about $50 and appears to have stabilised, from a high of more than $140 in July this year.

“We are delighted to be able to bring the cost of gas down this winter“, says the Managing Director of Manx Gas, Alan Bates. “We have all been battling with soaring oil prices this year, but now that they appear to have stabilized at a lower level, we are able to bring our prices down. We promised we would do this, and are really pleased to be able to deliver on that promise in time for Christmas”.

Manx Gas buys its gas on the wholesale energy markets, and prices there are linked to the price of a barrel of crude oil. If that goes up, Manx Gas has little choice but to follow suit. The company monitors the oil and gas markets very closely indeed to make sure it is securing the lowest prices. The LPG market has reduced directly in line with the reduction in the cost of crude oil. The wholesale price for natural gas has not fallen as significantly as LPG. Manx Gas will continue to regularly review further changes in wholesale natural gas market prices and pass these on to our customers when it is appropriate to do so.

“We are very well aware of the impact of rising fuel costs on our customers in this economic climate, and do what we can to limit any increase. But that also means whenever we are able, we will also bring prices down too. This is the second time we have done just that in the last couple of years. We believe gas is the most economical way of heating your home, and winter is clearly the time when a reduction in prices will have the most impact”.

These reductions remove the fuel cost adjustment from LPG products and leave a 0.95 pence fuel cost adjustment on the natural gas tariffs.

The decreases have been discussed with the Office of Fair Trading. Customers can access the latest prices for their area on  www.manxgas.com or check the comparative costs of home heating by different fuels on the Office of Fair Trading website.