The Price of Utilities Increase in Rows

The price of utilities such as petroleum, gas, electricity etc is expected to increase in rows. So the burden of heating expense becomes heavier.

On the 30th, Korea Gas Corporation announced that it would increase the whole sale price of LNG by 18.oo won per ㎥ from the 1st of the next month.

So the wholesale price will increase from 354.49 won per ㎥ to 372.49 won per ㎥ by 5.1%.

In case of Seoul, consumer price will increase from 397.58 won to 415.58 won by 4.5% even if there is difference geographically.

The corporation explained “As the importing price of LNG increases, the corporation is reluctant to increase the price.”

As international price of petroleum increases, domestic roil refineries are considering the increase of the price from the 1st of next month.

A person belong to a oil refinery company spoke “The increase of the price of crude oil and the devaluation of Korean Won cause to increase 10 won for petrol per liter and 20 won for diesel per liter.” And added “There is a possibility that a part of increasing factor to be reflected into the supply price.”

LPG industry also considers increasing the price of butane gas for automobile and propane gas for cooking from the first of next month. In case of Butane for automobile, 40 won per liter at maximum, and in case of propane gas, 80 won per kilogram per liter will be increased. Then butane gas for automobile will increase to 540 won per liter, and propane gas to 605 won per kilogram.

The Ministry of Commerce, Industry and Energy has already increased the local heating fare for 850,000 households by 9.8% with LG Power and Korea Local Heating Corporation at the first of this month.

As the Ministry of Commerce, Industry and Energy changed rate system in June of this year, the night rate of electricity applied in this winter (from October to March in the next year) will increase 23.2 won to 31.20 won per kWh by 34%.

Ja-Ryong Koo bonhong@donga.com