Gas prices could rise following wholesale price jump

12 January 2009

Hopes of cheaper domestic energy in the coming months have taken a blow following a recent rise in the wholesale cost of gas.

With an ongoing political row between Russia and Ukraine, the wholesale price of gas rose by 26% in just three days last week, according to The Guardian – which could affect the long-term prospects of price cuts from energy companies.

The news follows Scottish Power’s announcement last week that it would be cutting some of its gas prices by 10%, prompting speculation that other companies would follow. But the recent developments may suggest that any price cuts could be relatively short-lived.

A debt expert for Think Money said: “A lot of billpayers have been pushed towards debt by the rapid rises in energy prices in the past year, so many will be disappointed to hear that wholesale costs are rising again. However, it usually takes a few months for changes in wholesale costs to filter through, so we may still see cheaper prices for at least the first few months of 2009.

“In the meantime, it’s important that billpayers ensure they are able to cope with current prices as well as preparing for potential price rises in the future. Anyone who finds themselves struggling should address the problem early and seek debt advice.”

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Tags: debt, gas, gas prices, wholesale, Scottish Power, prices

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