ENERGY PRICES are continuing to rise, despite the economic turmoil in Europe and the US.

Increasing demand for oil in China and instability in the Middle East pushed the Bord Gáis energy index up by 2 per cent in July.

Energy prices in Ireland have risen by 24 per cent in the year to July, and by 55 per cent from July 2009. Further rises are also expected this year. The increase in the wholesale price of oil was a major factor behind the rise in the index, which is based on the cost of the various fuels used in Ireland. A weakening of the euro versus the US dollar and sterling also contributed to the jump in the index to 139, up from 135 in June.

“Economic and geopolitical issues were the main reasons for the increase in oil prices,” said Michael Kelleher, energy trading analyst at Bord Gáis Energy.

Last month the oil element of the index increased by 5 per cent, as uncertainty over the global economy fuelled price increases.

Coal prices also increased last month, up by 2 per cent, despite low summer demand and plentiful stockpiles of the mineral. On the decrease however, were both natural gas and electricity. The natural gas element of the index fell by 2 per cent, due to lower levels of demand and steady supply. The electricity component dropped by the same amount due to a seasonal variation, which saw lower demand and availability from lower cost generators.

Bord Gáis anticipates a further increase in energy prices in the fourth quarter.