Gyeonggi-do to Reduce City Gas Rates by 12.6%

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province will reduce urban gas consumer rates by an average of 12.6% starting in August.

Urban gas consumer rates are finalized annually between July and August by metropolitan governments, combining the Korea Gas Corporation wholesale rates set by the Ministry of Trade, Industry and Energy every July and the retail supply costs set by city and provincial governors every August.

The province explained that due to the recent drop in oil prices, the government-set natural gas wholesale rate decreased by 1.9972 KRW/MJ (megajoule), and although the retail supply cost set by Gyeonggi Province increased by 0.0708 KRW/MJ, overall, the urban gas consumer rate in Gyeonggi Province will decrease by 1.9264 KRW/MJ.

The province raised the retail supply cost from 1.3969 KRW/MJ last year to 1.4677 KRW/MJ this year, reflecting decreased sales volume of six urban gas companies in the province and increased labor costs.

However, the province stated that it expects to secure approximately 15.7 billion KRW in additional funds through this retail supply cost increase and plans to use all of it for the benefit of residents.

It will support 360,000 socially vulnerable households, including persons with disabilities, child-headed households, and basic livelihood security recipients, by providing 8.5 billion KRW in urban gas fee discounts, and will invest 13.8 billion KRW in pipeline installation and other measures for about 5,500 households in the province that do not receive urban gas supply.

Additionally, the province will raise the wages of urban gas customer center workers, who handle public services such as home gas facility safety inspections and meter readings, from the current hourly wage of 10,200 KRW to the Gyeonggi Province living wage level of 10,364 KRW per hour, aiming to provide improved services to residents.

Um Jin-seop, Director of the Provincial Environment Bureau, emphasized, "Although the urban gas retail supply cost has slightly increased, the burden on residents has significantly decreased due to the wholesale rate reduction. We will continue to expand facility investments for improving service quality and ensuring safe urban gas supply and usage with the newly secured funds."

This content was produced with the assistance of AI translation services.