KOGAS to raise gas price for households by 6.8 pct from August

State-run Korea Gas Corp. (KOGAS) said Friday it has decided to raise its utility bill for households by 6.8 percent to address growing global energy costs and mounting financial losses. Under the decision, the cost of gas supplied to households will rise to 22.2 won (US$0.02) per megajoule in Seoul, up from the current 20.8 won, the company said in a statement. The new price will be applied starting in August. KOGAS said an average household with four members will experience a 3,770 won rise in their monthly gas bill following the adjustment. KOGAS noted that the latest decision was inevitable to maintain a stable supply of gas, considering its interest payments have reached 500 billion won annually amid financial jitters. The company has been facing financial difficulties due to its inability to raise enough utility costs to address fluctuations in the global market for resources in the face of Russia's invasion of Ukraine. KOGAS earlier reported that as of March, the amount of uncollected payments, w hich refers to the expenditures used to purchase gas that have not been recovered through gas bills, had reached 13.5 trillion won and is anticipated to reach 14 trillion won by the end of this year. The company said it will nevertheless continue to support low-income households by rolling out projects to replace heating systems and windows to improve their living environment. "KOGAS will continue efforts to minimize the price hike and seek projects to support vulnerable people to address blind spots in energy welfare," the company said in a statement. Source: Yonhap News Agency