[Asia Economy Reporter Kim Hyewon] E1, a domestic liquefied petroleum gas (LPG) importer, will lower LPG supply prices for the first time in seven months.
On the 1st, E1 announced that it will reduce the domestic LPG supply price by 30 KRW per kilogram in January. The company explained, "We considered international LPG prices and other factors."
This is the first time in seven months since E1 lowered domestic prices in June last year. At that time, the reduction was 40 KRW per kilogram. Afterwards, prices were raised by 48 KRW in July, 80 KRW in August, and 50 KRW in September. The price was frozen in October but increased by 165 KRW in November and 88 KRW in December.
With the January price reduction, E1's domestic LPG supply price is set at 1,367.8 KRW per kilogram for propane used in households and commercial sectors, and 1,374.4 KRW for industrial use. The price of butane is 1,690.38 KRW per kilogram. Household and commercial use refers to propane supplied to filling stations and city gas companies for general consumers to use for cooking and heating. Industrial use refers to propane used as fuel and other purposes in industrial facilities.
Domestic LPG supply prices are determined based on international LPG prices notified by Saudi Arabia's state-owned oil company Aramco, reflecting exchange rates, various taxes, and distribution costs. Domestic supply prices are decided based on the previous month's international LPG prices, considering transportation time from the Middle East to Korea.
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