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After kerosene, city gas prices soar… heating bills

[Gohebydd Park Sang-cheol, Central Daily]“I was surprised to receive a city gas bill recently.

A (39), who lives in Seonghwa-dong, Cheongju-si, Chungcheongbuk-do, was shocked when he received the city’s gas notice in November. This is because the price has risen significantly compared to the previous year. Like Mr. A, there are many citizens these days who are confused by the sudden jump in city gas rates. They raise voices by posting city gas bill certification on SNS or online communities.

As city gas prices rose 36.2% year-on-year in November, the winter heating cost burden is expected to increase.

According to last month’s consumer price trends recently published by the National Statistical Office, compared to a year ago, city gas prices increased by 36.2%, district heating costs by 34%, and electricity costs by 18.6%.

In particular, city gas prices rose three times this year (April, July, and October) due to the war between Russia and Ukraine, soaring 37.8% from the same period last year to 89.99 won per 1Mcal. During the winter season (December-February), when gas demand is high, KRW 92.50 per 1 Mcal is applied as a differential rate for each season.

Since October, when the rate was raised, citizens are seriously using a lot of heat, it seems that the increase in the rate and the increase in usage has led to a sudden increase in billing.

In addition, the possibility of additional increases due to global natural gas supply and demand uncertainty remains, which is expected to further increase the gas cost burden in the winter.

Compared to the same month the previous year, the rate of increase in electricity, gas and water prices by the local government in the Chungcheong region ▷Daejeon (23.1%) ▷Sejong (22.8%) ▷Chungnam (21.9%) ▷Chungbuk ( 20.4%) has risen significantly.

Mr B (45), a housewife who lives in Bunpyeong-dong, Cheongju City, said, “I heated it as usual, but the heating cost was higher than I thought, so I removed the electric blanket out.”

Amidst this, according to the November 2022 consumer price trend published by the National Statistical Office, kerosene rose by 48.9% from the same month last year.

The price of kerosene for indoor use remained in the range of 800-900 won until the third quarter of last year. After reaching a high of 1,696.28 achieved on July 11 this year, it has fallen slightly, but is still at a high level.

For kerosene, which overlaps production lines with diesel, production decreases relatively when diesel production increases. As Russia stopped supplying natural gas to Europe, the demand for diesel as an alternative material increased, reducing the supply of kerosene. In addition, the demand for kerosene (aviation fuel) has increased significantly since the endemic, and kerosene prices are expected to rise and maintain an upward trend.