Good Energy said it will reduce gas prices for its customers by 7.2% from April this year.
The renewable electricity supplier and generator said the average duel fuel users will save an estimated £42 off their bill.
It compares to a previous saving of an average of £32 that the ‘Big Six’ are offering through their gas price reductions.
The reduction is expected to apply to standard variable tariff customers and not to customers on a fixed tariff.
Juliet Davenport, chief executive of Good Energy, said: “Today’s announcement further strengthens our competitive pricing, 100% renewable electricity and award-winning customer service proposition to new and existing customers.”