Higher oil prices pushed up energy costs by 48% in past year

Energy costs rose 48 per cent over the past year on the back of increases in oil prices, figures released at the weekend show.

The monthly Bord Gáis Energy Index shows that prices fell 1 per cent in January but were up 48 per cent on the same month last year, driven mainly by strengthened oil prices.

Both gas and electricity prices rose across Europe in January as colder weather set in across the continent. However, coal and oil both dipped, offsetting the increase in other energy costs.

Darragh Crowley of Bord Gáis Éireann warned that despite January's fall, the overall index rose steadily through the year, mainly because of the decision by Organisation of Petroleum Exporting Countries (Opec) to cut production.

Falcon investors cheer Australian gas exploration results

---

State’s first natural-gas filling station to open in Dublin

---

Oisín Fanning’s San Leon receives second Chinese approach

---

Oil supply fell by 1.5m barrels in January as cuts continue

---

“We will continue to monitor the markets closely coming into 2017 in what is set to be an interesting year in terms of energy market fundamentals and geopolitical concerns, which have a direct impact on energy markets,” he said.

Oil prices hit a low of $27 a barrel in January 2016, but had climbed back to $55 by the end of last month.

Cold weather

Bord Gáis suggests that US oil producers could respond to Opec’s move by increasing production, which would help to offset the cartel’s cut.

Figures last month indicated that US producers were adding more new rigs than at any time over the past two months while the indications were that president Donald Trump’s administration would support increased drilling.

Irish wholesale electricity prices averaged €13.21 per mega watt hour in January, 9.5 per cent less than in the previous month.

The proportion of electricity generated by wind dropped to 20 per cent last month from 23.1 per cent in December.

Cold weather and a shortage of gas in storage drove the fuel’s cost up last month. Prices were 14 per cent higher than in December while gas was 46 per cent more expensive than it was 12 months earlier.