S.Korea's top 2 LPG importers E1 and SK Gas cut supply price

South Korea's two major importers of liquefied petroleum gas (LPG), E1 Corp. and SK Gas Corp., have both cut their supply price of LPG in the first month of the new year by 20.55 won ($0.16) per kg from last month, as domestic prices of the gas decline for the ninth consecutive month after seeing a record high in April last year.

Global contract prices of LPG have kept rising but both companies said their price cut was made out of concern for consumers.

Gas industry sources on Sunday said the propane supply price for household and commercial use this month was set at 1,325.25 won per kg and that for industrial use 1,331.85 won. SK Gas also lowered the price of propane by 20.55 won per kg, a rate like E1's.

The butane price for SK Gas was 1,591.68 per kg and that for E1 1,592.68 won, the same as last month. Both companies said the rates appeared to be frozen because butane's sales tax of 20.55 won per kg, the same as propane's, saw its temporary suspension end as of Sunday.

Initial expectations said both companies would raise their supply prices this month because Saudi Arabia's government-run oil company Aramco, which sets prices on the global LPG market, last month raised the contract price $40 per ton for both propane and butane.

An E1 source said, "Despite higher contract prices, we decided to lower the LPG price based on factors like the won's rebound against the dollar and consumer burden during winter."

In November last year, Aramco raised the contract price for butane by 50 won per kg from the month before but both E1 and SK Gas cut the prices of propane and butane by 20 won per kg.

Write to Kyung-Min Kang at kkm1026@hankyung.com