British Gas customers will see their annual energy bills reduce by an average of £37, the Big Six supplier claims.
The company has promised to reduce its household gas prices by 5%, which will come into effect on 27th February.
It is expected to benefit around 6.8 million customers, including those on the Fix & Fall tariffs.
British Gas said the price reduction reflected the recent fall in wholesale gas prices.
The move comes after energy supplier E.ON cut its gas prices by 3.5% last week.
Iain Conn, Chief Executive of Centrica, the owner of British Gas said: “We’ve been watching the significant moves in the international energy market extremely closely for some time, with the aim of helping customers with a price cut at the earliest possible opportunity.
“Taking this decision now, at a time of continuing uncertainty, shows our absolute commitment to pricing competitively, with customers at the forefront of our minds.”