SEOUL — The Korea Gas Corporation (KOGAS) announced on Friday a 6.8 percent increase in household gas prices effective from August, attributing the rise to escalating global energy costs and substantial financial deficits.
According to Yonhap News Agency, The company explained that the price of gas will increase to 22.2 won per megajoule in Seoul, up from the current 20.8 won. This adjustment is projected to result in an average monthly bill increase of 3,770 won for a typical four-member household. KOGAS highlighted that the price hike is crucial to ensure the stable supply of gas, especially as the company grapples with annual interest payments of approximately 500 billion won amid ongoing financial challenges.
KOGAS has been under financial strain due to inadequate adjustments in utility costs amidst global market fluctuations, exacerbated by the geopolitical effects of Russia's invasion of Ukraine. As of March, KOGAS reported about 13.5 trillion won in uncollected payments, a figure that is expected to rise by the end of the year.
Despite these challenges, KOGAS affirmed its commitment to supporting low-income families by implementing projects aimed at improving heating systems and windows to enhance living conditions. "We will continue to minimize the impact of price increases and extend our support to vulnerable populations," the company stated.