A bump in natural gas prices will lead to a slight 1.5 percent increase for National Fuel Gas Distribution Corp. customers, the utility said Friday.

NFG said the rate hike for a typical customer using 100,000 cubic feet of natural gas a year will mean a $15.35 annual hike to $1,019.60 from $1,004.25. The rate hike is effective Sunday.

The price hike reflects the cost NFG pays for natural gas. By law utilities are not allowed to profit on the price it charges for gas but are allowed to adjust for costs every quarter.

“This adjustment is necessary to more accurately reflect the price of the natural gas the company purchases for its customers,’’ Sandra James an NFG spokeswoman. “The amount is directly related to the actual market price of natural gas during the past three months as well as the projected price of gas that the company will be purchasing for its customers from now through July 2010. Our next opportunity to adjust gas supply charges is Feb. 1, 2010.”

Despite the latest increase in gas costs rates are nearly 40 percent lower than last year, she added.

“There are things customers can do now to prepare for the months ahead,” James added. “We urge customers to take steps to make sure their homes are energy efficient: drafts around doors and windows should be sealed; attics and walls should be well insulated; heating equipment and appliances should be checked to make certain they operate at peak efficiency.”

She encouraged NFG customers to contact NFG about payment programs and services that may help them.

NFG serves about 214,000 customers in 14 northwestern Pennsylvania counties including Mercer County.

NFG customers can contact the company at: 1-800-365-3234.