21/11/2008

Fuel Prices Hike Avoided

The expected huge price increases for gas and electricity expected in January are now unlikely to go ahead.

Last month Bord Gáis had sought the energy regulator's permission to increase its prices by 4.2%, which would have added about €3 a month to the average household bill.

Electricity costs were also expected to rise, but due to the global economic stagnation, the demand for oil and gas has plummeted.

Oil is now at its cheapest in three years at €48 per barrel, almost $100 a barrel less than July's peak of $147.27.

The price of natural gas has also fallen by 60% from a peak reached earlier this year.

Following the price drops, the ESB and Bord Gáis have said that the price increases they have sought from the Commission for Energy Regulation may not now be necessary.

However, internationally, oil giant OPEC have announced they plan to cut their production of supply of crude oil in order to bring the price up to a steady $80 to $90 and lowered production quotas by 1.5 million barrels a day last month.

(DW)


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