Gov’t says it will slash costs of natural gas used by residences

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Gov’t says it will slash costs of natural gas used by residences

The government announced it plans to slash the price of natural gas used by residences by another 10.3 percent in May thanks to falling prices of crude oil and liquefied natural gas.

According to the Ministry of Trade, Industry and Energy on Thursday, the decision came after it got an agreement from the ruling Saenuri Party.

It will be the third such cut this year in so-called “city gas” prices, following a 5.9 percent cut in January and a 10.1 percent cut in March.

This adds up to a 24 percent drop in city gas prices compared to last year, from 21.75 won per megajoule at the end of 2014 to 16.5 won per megajoule. The 24 percent cut will allow each of the 15.6 million households nationwide to save an average of 95,000 won ($87) on their gas bills by the end of this year.

According to the Korea Gas Corporation, each household paid an annual average of 676,000 won last year, which is expected to drop to 581,000 won for this year.

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