Public Charges to Increase

As of next month, a variety of public charges, including taxi fares, tap water fees and the price of municipal trash bags will increase, followed by the oil prices, heating charges, and the cigarette prices. Therefore, it seems to be difficult for the government to keep the goal to limit the rate of the consumer price increase to three percent.

According to the Ministry of Finance and Economy yesterday, provincial governments plan to raise a variety of public charges during the latter half of the year, which has been delayed by the government’s direction to regulate the prices during the first half of the year. The Pusan City government plans to increase the average 18.69 percent of taxi fares, including the increase of the base rate for taxi fares to 1,500 won from 1,300 won, as of July 2. The Seoul Metropolitan Government, which already raised 28.24 percent according to the recent research, has also said it will raise the taxi fares 20-30 percent beginning at the end of August. Due to the increase of taxi fares in Seoul and Pusan, taxi fares in other cities are expected to increase during the latter half of the year. Water charges increase as well. The Pusan City is reported to boost tap water charges by 12.43 percent beginning next month, and cities and cities and counties in Kyonggi Province, including Sungnam and Ahnyang, will also raise tap water charges by 10-20 percent during the latter half of the year. Osan and Namyangju cities in Kyonggi Province are trying to raise the price of trash bags.

Heating charges, oil prices, and cigarette prices are under consideration. The Korea District Heating Corporation is to raise the 5.48 percent of district heating charges. The prices of LPG, diesel oil, and kerosene will increase by 5.2-18.2 percent per liter beginning in July 1. The cigarette price will increase by 190-200 won due to the increase of the public insurance payment and the charges for the stabilization of cigarette cultivation. The consumer price rate has increased by 2.5 percent by the end of May compared with the end of the last year. Oh Gap-Won, director of the public life in the Ministry of Finance and Economy, said that ``although the local public charges are decided by the provincial governments, we will try to lower the rate increase through the consultation with the related ministries.``

Park Joong-Hyun sanjuck@donga.com