Gas prices increased by 15.9 percent for households

Gas meters in Seoul. [YONHAP]

The price of gas used for heating and cooking will increase 15.9 percent from tomorrow, adding an average of 5,400 per month to the household gas bill.

Prices for businesses, including restaurants, will increase between 16.4 and 17.4 percent.

According to the Ministry of Trade, Industry and Energy on Friday, gas prices will be increased to 19.69 won per megajoule from 16.99 won due to rising natural gas prices and the stronger dollar.

According to the government, the unit price of imported natural gas has more than quadrupled since 2021.

In the first quarter of 2021, imported natural gas was $10 per million B.T.U. Today, it is $47.

With the change, the average monthly bill for households in Seoul will go from 33,980 won to 39,380 won.

The government noted that raising gas prices is inevitable. Utilities are logging huge deficits as the gap between how much they pay for gas and how much they charge widens.

For Korea Gas Corp., the accumulated deficit was by 5.1 trillion won at the end of the first half.

While Korea imports the majority of its gas from Qatar, the recent leak in the Nord Stream Pipeline amid the war between Russia and Ukraine is expected to further dent supply.

The government has yet to announce whether it will raise electricity rates, which were supposed to be announced on Sept. 21.

Uncertainties have been raising doubts as to whether Korea's inflation will begin to fall after peaking in September or October.

"The economic team will work closely on the current situation," Finance Minister Choo Kyung-ho said on Friday.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]