Bord Gáis Energy has said it will cut gas and electricity prices from the middle of March.

The company said that the price of its gas unit is to go down by 3.5% while the unit price of electricity is to be lowered by 2.5%. 

Bord Gáis said the change will reduce the average gas bill by just over €29 while it will result in a saving of nearly €25 on the average electricity bill. 

Energy companies have been under pressure to reduce energy prices to reflect the recent steep fall in oil prices.

Bord Gáis Energy, which has 333,000 residential gas customers and 277,000 residential electricity customers, said that the drop in prices comes from an on-going review of reduction in wholesale energy costs. 

"We purchase gas over a year in advance on a staged basis to ensure price stability and achieve a smoothing out of market volatility for our customers," it added.  
 
Dave Kirwan, the company's chief operating officer, confirmed that customers who signed up to its new fixed rate products in gas and electricity will benefit from the reductions in March also.