Korean gov’t freezes residential gas rates amid high inflation
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According to the Financial Supervisory Service‘s electronic disclosure system on Monday, the government recently notified Korea Gas Corp. of its decision to maintain the current rates for wholesale supply for residential and general use for the time being.
Accordingly, the wholesale rate per megajoule (MJ) of city gas for civilian use is expected to remain at 19.4 won ($0.014), while city gas rates for business heating and power generation will increase by 1.5 percent and 2.6 percent, respectively.
Gas rates have been frozen since May 2023 when they rose by 1.04 won per MJ.
The first day of May of every year is the day when the supply costs that make up gas rates are adjusted, and the government has considered a price hike that would align with the date.
There were expectations that public utility fees such as those of gas and electricity would increase all at once after the general elections.
There were industry predictions that gas rates would increase by around 10 percent, given the rise in gas costs.
“Considering factors like inflation, we have decided that May is not the right time for a price hike,” a government official said.
The official, however, added that this price freeze could not continue until next year’s gas supply cost adjustment date on May 1.
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