British Gas – the UK’s biggest domestic energy supplier – is to cut gas prices by 5% on 27 February.
The supplier, part of the Centrica group, said the cut would reduce the typical household’s annual energy bill by £37.
The move comes after E.On reduced its standard gas prices by 3.5% last week.
British Gas said that the price cut reflected the recent fall in wholesale gas prices, which suppliers have been under pressure to pass on.
“We’ve been watching the significant moves in the international energy market extremely closely for some time, with the aim of helping customers with a price cut at the earliest possible opportunity,” said Iain Conn, chief executive of Centrica.
“Operating in such a volatile market, no pricing decision is straightforward.”