British Gas owner Centrica has become the latest energy company to cut its bills, slashing household gas prices by five per cent.
In a statement today, the company said the cut will reduce average household energy bills by £37, benefitting 6.8 million customers.
The price cut, which will take place from 27 February, "reflects the recent fall in wholesale gas prices", it said.
However, it also cautioned that, because prices are so volatile at the moment, it will keep prices "under review for further movements up or down".
The company is the latest to slash its tariffs, after the plummeting price of oil caused energy producers to come under political pressure to pass on their savings to customers.
Last weekend energy minister Matthew Hancock wrote to firms including British Gas, demanding that they cut prices.
On Tuesday German-owned firm E.On became the first to respond to his letter, reducing its standard gas tariff by 3.5 per cent, which it said will save two million households £24 a year on their average energy bills.
Today Centrica chief executive said the company had been keeping a close eye on market fluctuations.
We bear the responsibility of managing the risks of buying energy ahead on behalf of our customers, who value the predictability this brings. Taking this decision now, at a time of continuing uncertainty, shows our absolute commitment to pricing competitively, with customers at the forefront of our minds.