Watchdog presses for probe into LPG prices after pensioner found NI prices 77% higher than in GB

Dr Beatty Crawford owns an apartment in Hillsborough which he rents out.

“The tenant began to complain that the LPG prices they are having to pay are extreme,” the retired doctor said. “When I looked into it I found a huge differential.”

He complained to the Department for the Economy (DfE) and it replied in 2018 that Calor LPG prices per litre were 37p for GB compared to 65.3p for NI, a difference of some 77%. However, the annual standing charges were also significantly higher in NI – £63-£91 per year in GB compared to £99.60-£150.

DfE said that LPG suppliers gave two reasons to explain the difference: transporting LPG to NI incurs extra port taxes and jetty fees, and a smaller customer base in NI reduces economies of scale.

But Dr Beatty believes the cost of bringing an LPG tanker across the Irish Sea could not explain the 77% price disparity.

“I feel that this price differential is exploitative and that the government is toothless in this matter,” he said.

He challenged Calor Gas NI to disclose the LPG shipping costs and any savings it might make through different NI labour costs.

Yesterday, DfE said that unlike natural gas, the NI’s LPG market is unregulated, as is the case in GB and the Republic of Ireland.

There are no plans to introduce regulation because any potential benefits could well be offset by the cost of doing so, it said; typically it would be paid for by a levy on an energy product and there are only 5,000 LPG customers in NI, compared to 260,000 using natural gas.

However, Calor Gas NI said its current prices here are significantly lower than those DfE cited to Dr Beatty in 2018, “reflecting the efforts Calor NI are making to reduce costs to customers”.

It added: “Based on our knowledge of Calor GB’s average pricing in their market, Calor Gas NI understands that any difference in pricing, including shipping costs, between the UK and Ireland for metered estates is marginal.”

Paulino Garcia at the Consumer Council said NI LPG users “have consistently contacted us expressing concern about the cost of LPG”, in particular compared to gas and oil. He has asked the Competition and Markets Authority to investigate, he added.

A message from the Editor:

Thank you for reading this story on our website. While I have your attention, I also have an important request to make of you.

With the coronavirus lockdown having a major impact on many of our advertisers - and consequently the revenue we receive - we are more reliant than ever on you taking out a digital subscription.

Subscribe to newsletter.co.uk and enjoy unlimited access to the best Northern Ireland and UK news and information online and on our app. With a digital subscription, you can read more than 5 articles, see fewer ads, enjoy faster load times, and get access to exclusive newsletters and content. Visit https://www.newsletter.co.uk/subscriptions now to sign up.

Our journalism costs money and we rely on advertising, print and digital revenues to help to support them. By supporting us, we are able to support you in providing trusted, fact-checked content for this website.

Alistair Bushe

Editor