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Gas prices 'may fall next year'
4.09.2008
An expert has suggested that if oil prices continue to fall, gas prices in the UK may also reduce next year.
Speaking to the Associated Press, James Allpress, an analyst at energy data firm ICIS Heren, explained that lower oil prices do not "immediately translate" into a reduction in the price of wholesale gas.
Instead, such price movements tend to impact upon the country's gas market several months later, Mr Allpress said.
"This winter's wholesale UK gas price already has the high oil price built in, though if oil prices continue to fall, we should see that reflected in falling gas prices next year," he commented.
Last week, energywatch called on the government to provide support for households struggling to pay their energy bills.
The watchdog made its appeal following the news that both Npower and Scottish Power had raised their domestic gas and electricity prices.
Adam Scorer, director of campaigns at the organisation, said "action is long overdue".
Speaking to the Associated Press, James Allpress, an analyst at energy data firm ICIS Heren, explained that lower oil prices do not "immediately translate" into a reduction in the price of wholesale gas.
Instead, such price movements tend to impact upon the country's gas market several months later, Mr Allpress said.
"This winter's wholesale UK gas price already has the high oil price built in, though if oil prices continue to fall, we should see that reflected in falling gas prices next year," he commented.
Last week, energywatch called on the government to provide support for households struggling to pay their energy bills.
The watchdog made its appeal following the news that both Npower and Scottish Power had raised their domestic gas and electricity prices.
Adam Scorer, director of campaigns at the organisation, said "action is long overdue".