South Korea’s government announced on Friday that it is considering providing additional energy vouchers to subsidise vulnerable households due to the rising global fuel prices, caused by the conflict in West Asia.
The country is also preparing to boost nuclear and coal-fired power generation in the event that oil prices keep spiking and liquefied natural gas (LNG) supplies continue to be disrupted.
“The government will take all necessary measures to minimise the burden on the people, such as stabilising energy supply and demand, price management, and supporting people vulnerable to rising energy costs.” Industry Minister Kim Jung-kwan said on Friday.
A government official speaking to Reuters said it is also considering an expansion of the current budget to include energy vouchers for low-income and other vulnerable groups in a supplementary budget that is currently being drafted.
South Korea already has an energy voucher budget of 500 billion won ($335.93 million) from last year in place, which is valid through May, and another approximately 500 billion won has been added for this year’s energy voucher budget.
According to the official, the government will monitor the funds and consider providing additional support.
Coal And Nuclear Power
South Korea relies almost entirely on imports for its energy, buying nearly 70% of its oil and 20% of its LNG from West Asia, according to data from the Korean International Trade Association.
To reduce this dependence on LNG, the Climate and Energy Ministry stated that it would accelerate the restart of nuclear reactors under maintenance, with two units expected to come back online as early as March, with four more following by mid-May.
The government also said that coal-fired power output could be flexibly increased during periods when the impact on air quality from fine dust was low, if an LNG supply shortage materialised.
As of Friday, South Korea began capping domestic fuel prices to combat the rising energy costs.
(With inputs from Reuters)
