British Gas announces reduction in home gas tariffs

British Gas is to cut household gas prices by 5%, cutting an average of £35 off household gas bills.

It is the second gas price drop in six months by BG, and the two price cuts combined will equate to an average total saving of £72 a year

The discounts will take effect from 27 August.

Wholesale gas prices have dropped some 25% since December 2014 and British Gas said the cut reflected lower projected costs for this year and next year.

British Gas announced a price cut of 5% in January following moves by a number of the other "Big Six" energy suppliers.

The reduction should benefit around 6.9 million energy customers either on standard or "fix and fall" tariffs.

Meantime BG say their Electricity prices will remain the same.