Gas customers face new price hike

The price of domestic gas is linked to the rapidly rising global oil market

Thousands of gas customers in the Isle of Man are facing another price rise.

Island supplier Manx Gas is to increase natural gas tariffs by 1.32p per unit, and liquid petroleum gas (LPG) by 0.64p, from 1 August.

The company blamed the rising cost of wholesale gas, record oil prices and global economic pressures for the rise, which is the second this year.

On Friday, UK energy supplier Centrica warned that domestic energy bills could rise by 60% in the next few years.

Manx Gas Managing Director Alan Bates said: "We fully understand the frustration and concern of our island customers.

"We are equally frustrated but there is no way around the dramatic increases in the price of crude oil and the affect this is having on the world, and more importantly the UK wholesale gas market.

"We know how hard this hits customers, especially those in more vulnerable situations, and we maintain our ongoing promise that if the wholesale prices decrease, then this will be passed on to our customers in reduced prices, as we did in April 2007."

Mr Bates said anyone in a vulnerable situation with financial concerns should contact the company.