The government will look into the possibility of cutting the country's electricity rates, a ranking government official said Thursday, three days after the president urged that the recent plunge in global oil prices be reflected locally.
   
Moon Jae-do, vice minister of trade, industry and energy, said the cut, however, may not be easy, considering a number of other factors, such as the introduction of a new government tax on soft coal in July that could warrant a rate hike.
   
"Considering all necessary factors will be the most rational solution," he said while meeting with reporters here.
  
"Changes in electricity prices have traditionally come much later than those in prices of primary energy," he said of the reason why the recent drop in global oil prices has not yet been reflected in the country's electricity rates.
  
The average price of Dubai crude, which accounts for about 86 percent of the country's overall oil imports, has nearly halved from $104 per barrel in January to $55 as of Thursday.
  
Moon, however, said the oil price drop may not be as great a factor in lowering electricity rates because of the new tax on soft coal.
   
In 2013, only 2.9 percent of all electricity was generated by oil while about one third of the total came from using soft coal.
  
"It will take time to accurately analyze the cost of generating electricity. We must also see if the current price of oil and energy will be maintained, or if it's only temporary," Moon said.
   
The price of natural gas may be lowered in the near future to reflect the drop in global oil prices, the vice minister said, noting the price of gas supplied by the state-run Korea Gas Corp. is set every two months to count in any change greater than 3 percent in import prices.
  
"The price of the country's natural gas imports is linked to oil prices, and therefore, it is true that the recent drop in oil prices has created a factor that prompts a rate cut," he said. (Yonhap)