Average City Gas Rates to Increase by 1.8% Starting Next Month

[Asia Economy Sejong=Reporter Dongwoo Lee] Gas prices will increase by an average of 1.8% starting April 1. Gas prices have been frozen since an average reduction of 13.1% in July 2020.

The Ministry of Trade, Industry and Energy announced on the 31st that the prices for residential and general-use city gas will rise by an average of 1.8% due to adjustments in the standard raw material costs caused by increased production costs.

The residential rate will be adjusted from the current 14.22 won per megajoule (MJ, unit of gas calorific value) to 14.65 won, an increase of 0.43 won, while the general-use rate will rise by 0.17 won to 14.26 won.

Applying the increase is expected to raise the average monthly gas bill per household by 860 won. Based on Seoul, the monthly gas bill is projected to increase from an average of 28,440 won to 29,300 won.

Previously, the Ministry of Trade, Industry and Energy had reduced city gas prices by an average of 13.1% in July 2020 and kept them frozen since then.

The ministry stated, "The increase in raw material costs for residential and general-use city gas prices is inevitable to partially resolve accumulated unpaid bills," adding, "Considering the burden on the public, we decided to reflect the price increase factors at a minimal level."

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