Manx Gas announced today (19th July 2011) it has become necessary to increase the Fuel Cost Adjustment applied to its tariffs from 1st August 2011 as a result of further global increases in Natural Gas and LPG prices. There will be a 0.16p per unit increase (2.5%) in all natural gas tariffs, while the cost of Liquid Petroleum Gas (LPG) will rise by 0.75p per unit (8.0%) for all metered tariffs, mini bulk and cylinder tariffs. Manx Gas managing director Tony Nicholls said: “It is very unfortunate that we have to announce another Fuel Cost Adjustment this year. The well publicised increases in world prices for energy continue to affect us all and despite our efforts to secure the best prices for our customers by buying ahead, natural gas costs have continued to increase and are forecast to stay high for the remainder of 2011.” “This has necessitated the introduction of a further Fuel Cost Adjustment of 0.16p per unit for natural gas from 1st August 2011. This will cost the average domestic natural gas central heating customer, using 10,000 units per annum, an additional ?16.00 per year.” “The cost of LPG has increased far beyond our forecast and we paid significantly more for the feedstock during the spring months than we had budgeted. To compound this, the outlook is for prices to stay at a high level for the remainder of 2011. This has necessitated an increase to the Fuel Cost Adjustment of 0.75p per unit for LPG from the 1st August 2011. This will cost the average domestic LPG central heating customer, using 10,000 units per annum, an additional ?75.00 per year.” Looking ahead Mr Nicholls added: “We will continue to review wholesale prices throughout the coming months to ensure all tariffs reflect prices on the energy markets, both downward and upward movements are possible as the market forecasts do not always prove accurate.” The OFT has been informed of the new tariffs. - Ends -