NSW gas price rise less than expected

Gas prices in NSW will rise by about 0.3 per cent over the next financial year in what the independent regulator says is a modest increase that is even less than first forecast.

The Independent Pricing and Regulatory Tribunal (IPART) on Friday released its final decisions on average regulated retail gas prices for 2016-17.

It says the 0.3 per cent rise is less than the rate of inflation and follows an average 3.9 per cent reduction in prices in 2015-16.

From 1 July, most residential customers on regulated prices would see a small increase in their annual bills ranging from $2 to $7 per annum.

IPART Chairman Dr Peter Boxall said Friday's decisions are lower than the draft decisions, released in April, due to lower forecast inflation.

The price change will only affect the 20 per cent of household and small business customers who have not signed market contracts and remain on a standard agreement with regulated gas prices.