S. Korea to cut city gas rate by 9.3 pct on Nov. 1

S. Korea to cut city gas rate by 9.3 pct on Nov. 1

SEOUL: South Korea's energy ministry said Tuesday it will cut retail prices of natural gas for households and businesses by 9.3 percent on average starting in November.

The average gas rate will go down from 15.2 won (US$0.01) per megajoule (MJ) to 13.8 won per MJ, the Ministry of Trade, Industry and Energy said.

The gas price for households will be reduced by 8.7 percent on average, which will lower the monthly bills for 14.2 million households from an average 86,154 won to 78,726 won during the winter season from December to February, the ministry said.

The discount came as the government abolished surcharges on gas bills that had been imposed since 2013 to make up for losses of the state-run Korea Gas Corp. (KOGAS).

The state energy firm suffered deficits from 2008 to 2012 as it was refrained from raising sales prices despite higher import prices to maintain price stability.