Report shows wholesale gas prices have almost halved in a year

Report shows wholesale gas prices have almost halved in a year

There could be good news for gas customers.

A new report shows that the wholesale price of gas fallen by 45% in the last 12 months.

March saw prices go down by 6%, meaning prices have almost halved since April 2015.

The Vayu Wholesale Energy Market Report comes as Europe experiences a supply glut and euro values remain stable.

Supply from Russia and Norway has increased, and more liquefied natural gas is coming into Europe from the Middle East.

Senior Energy Analyst at Vayu, Gillian Lawlor, said: "For the most part prices have been trading sideways recently, however, this week there has been an increase in spot and future gas contracts, as a 22% increase on Brent crude since the start of the month makes itself felt."

"With weather becoming more of a factor from the end of April onwards, and a gradual increase in LNG deliveries expected during Q2, prices are expected to fall from where they are now.

"Strengthening in the value of the euro against sterling on the approach of the ‘Brexit’ referendum has also been a significant factor affecting Irish wholesale gas prices, given that the majority of natural gas consumed in Ireland is currently sourced from the UK wholesale gas market."

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