The government has decided to delay plans to increase gas prices this month despite the mounting financial losses of state-run Korea Gas Corp. (KOGAS), officials announced Monday. This decision aims to ease the economic burden on citizens amid uncertainties.
Korea has been reviewing proposals to raise gas prices supplied by KOGAS, which has struggled financially due to its inability to adjust utility costs in response to global market fluctuations exacerbated by Russia’s invasion of Ukraine.
Earlier reports from KOGAS indicated that as of March, uncollected payments for gas purchases had totaled 13.5 trillion won ($9.78 billion), a figure expected to rise to 14 trillion won by year-end.
Although the government typically adjusts gas prices on the first day of odd-numbered months, it may still consider a price adjustment later this month to stabilize KOGAS’s finances.
“We are actively discussing KOGAS’s financial situation and the possibility of raising gas prices,” a government official told Yonhap News Agency.
Currently, residential gas prices have remained unchanged since May last year, set at 19.4395 won per megajoule, approximately 80 to 90 percent of import prices.