UK: Energy Firms Should Pass Price Drop to Consumers

The British government on Wednesday told energy companies and airlines to pass on a steep fall in oil prices to consumers, saying it was considering whether action was needed to force firms to do so.

Four months before a May 7 national election energy prices are a politically sensitive topic, with consumers' living standards only just starting to recover from a prolonged period of economic stagnation.

A glut in global oil supplies has caused Brent crude prices to more than halve in a little more than six months, prompting the government to examine whether firms who are benefiting from the fall are lowering their prices.

The finance ministry said it was conducting an internal study of industries like utilities and airlines to determine whether any action needed to be taken.

On Tuesday, finance minister George Osborne highlighted on Twitter (TWTR) that oil prices were their lowest in five years. "Vital this is passed on to families at petrol pumps, through utility bills and air fares," he added.

Prices at petrol pumps dropped to their lowest since January 2010 on Tuesday. (Reporting by William James