The increase is due to take effect from May 29 and the company pointed out that regulator Ofgem was forced into a similar move for those people with prepayment meters.
But the Government issued a firm rebuttal, with energy minister Claire Perry describing the hike as "unjustified" and urged customers to switch suppliers.
The Centre has won an global arbitration involving potential claim of more than $1 billion, initiated six years ago by Reliance Industries Ltd and the Indian arm of BG (formerly British Gas) following a gas price and royalty dispute in the PannaMukta and Tapti fields off the Mumbai coast.
The company said a "typical" customer on its standard variable tariff would now pay an average of £1,161 a year when the £60 increase came in on May 29.
"This increase we are announcing today is reflective of the costs we are seeing which are beyond our control", Mark Hodges, CEO of the FTSE 100 group's consumer business, explained in the statement.
"While increases in suppliers' costs are likely to lead to higher prices for consumers, any reductions in costs should also be reflected in household bills".
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"Today's price rise re-emphasises the need for the Government to act quickly and bring in its cap on poor value default tariffs".
"Switching suppliers will always help consumers get the best deal, saving £308 by switching from a default tariff offered by the Big Six", she said.
With British Gas hiking it's prices yet again I'm sure Theresa May would want you to watch & RT this film from 2017 when she pledged to cap energy bills for 17 million families.
'We continue to work hard to reduce our own costs and keep our prices as low as possible. The company has attributed the move to rising wholesale energy and policy costs.
It's not the first energy firm to push up costs this year, in March E.On announced around 2m customers will see bills rise by up to £50 a year.
Centrica, the owner of British Gas, added that the new price will affect 4.1m customers.
"The data is clear, there is simply no justification for price hikes now, especially when British Gas put their prices up a year ago".