Government shelves plan to raise gas prices despite mounting losses

Gas meters are installed at the residential area in Seoul, June 23. Yonhap

The government decided to put on hold a plan to raise gas prices this month despite the mounting losses of the state-run Korea Gas Corp. (KOGAS) to ease the financial burden on people amid economic uncertainties, officials said Monday.

Korea has been reviewing raising gas prices supplied by KOGAS, which has been facing financial difficulties due to its inability to raise enough utility costs to address fluctuations in the global market for resources in the face of Russia’s invasion of Ukraine.

KOGAS earlier reported that as of March, the amount of uncollected payments, which refers to the expenditures used to purchase gas that have not been recovered through gas bills, had reached 13.5 trillion won ($9.78 billion) and is widely anticipated to reach 14 trillion won by the end of this year.

The government may still consider adjusting the price later this month to address the financial instability of KOGAS. The government normally adjusts gas prices on the first day of odd-numbered months.

“We are continuing discussions on the financial condition of KOGAS and whether to raise gas prices,” a government official told Yonhap News Agency.

Currently, the price of gas for residential use, which has been held steady since May last year, is set at 19.4395 won per megajoule, which is around 80 to 90 percent of the import prices. (Yonhap)