The Ministry of Trade, Industry and Energy (Minister Chang-yang Lee) announced that from July 1, the city gas rate for civil (housing and general use) will increase by 1.11 won per megajoule (MJ).
An official from the Ministry of Trade, Industry and Energy said, “This increase is the result of reflecting the increase in the standard raw material cost (+0.44 KRW/MJ) in addition to the settlement unit price (+0.67 KRW/MJ) confirmed through the revision of the ‘Natural Gas Supply Regulations’ in December 2021.” “As international oil and natural gas spot prices and foreign exchange rates surged all at once from the second half of last year, an increase is inevitable, but we have adjusted it to a minimum in consideration of the inflation effect,” he said.
The city gas rate is calculated in conjunction with the unit price of natural gas (LNG) imports. International oil prices, which are factors that affect unit prices, rose 61% from the same month of the previous year, natural gas spot prices rose 141%, and the exchange rate rose 14%. rose sharply.
In addition, since July 2020, as the city gas rate has been minimized to alleviate the burden on the public, receivables for private use, which were 1.8 trillion won as of the end of 2021, increased 1.5 times in the first quarter and increased to 4.5 trillion won in the first quarter. would be impressed
In accordance with this rate increase, the housing rate is adjusted to 16.99 won, which is 1.11 won higher than the current 15.88 won per MJ, and the general (business 1) rate is adjusted to 16.60 won.
The rate of increase is 7.0% for residential use and 7.2% or 7.7% for general use, and the average gas rate per household is expected to increase by 2,220 won per month throughout the year.
