electricity bills from June.

The good news came after months of creeping fuel prices, which last month saw the cost of a litre of gas shoot up to $1.26.1.

Minister of Finance Eugene Cox announced yesterday that with immediate effect gas was down by 3.2 cents a litre, diesel by 2.8 cents a litre and kerosene by 3.1 cents.

As a result, the maximum retail prices on the pumps for petroleum products are now $1.22.9 for gas, 96.3 cents for diesel and 76.2 cents for kerosene.

Ed Edelson, general manager of Esso Bermuda, said the price drop was a consequence of lower fuel prices around the world.

He added: "Here in Bermuda we have a policy of following world prices. We look periodically to see what the changes are on world prices and based on that we adjust.

"The OPEC agreement of last month, where they agreed to increase production, was the key element in prices going down.'' But he said Esso did not like to predict prices, so he would not be drawn on how long the price of fuel would remain low.

A spokeswoman for Belco said they too would be following suit and prices would eventually drop for electricity.

She said: "We anticipate that as of June our fuel adjustment rate will come down to reflect the drop in world fuel prices. As yet, we do not know how much the cost will come down.''