Fuel Prices Including Electricity and Gas Rise 32% in January... Highest Since the Foreign Exchange Crisis

City Gas 36%↑ · District Heating Cost 34%↑

A view of an electric meter at a multi-family house in Seoul on the 30th, as the government is scheduled to announce the electricity and gas rate adjustment plan to be applied in the first quarter of next year. The Ministry of Trade, Industry and Energy will announce the electricity and gas rate adjustment plan for the first quarter of next year on this day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Jang Sehee] Last month, the prices of fuels such as electricity and gas used in households rose by more than 30% compared to a year ago, marking the highest increase since the foreign exchange crisis.

According to the National Statistical Portal (KOSIS) of Statistics Korea on the 5th, the price index for electricity, gas, and other fuels last month was 135.75, up 31.7% from the same month last year. This is the highest rate of increase in 24 years and 9 months since April 1998 (38.2%) during the foreign exchange crisis.

Electricity rates rose 29.5% compared to a year ago, and city gas increased by 36.2%. Kerosene, mainly used in areas where city gas is not supplied, rose 37.7% compared to a year ago.

As the cost burden from rising international energy prices began to be fully reflected in public utility rate hikes, fuel prices have continued to soar. With fuel prices rising, electricity rates were increased last month following hikes in April, July, and October of last year, while city gas rates were raised in April, May, July, and October of last year.

Meanwhile, with future increases in essential living costs such as electricity, gas, and public transportation fares anticipated, the burden of perceived inflation is expected to intensify.