The local price of natural gas supplied by the state-run Korea Gas Corp. will be cut by an average 5 percent from the start of next year, the government said Friday.

The move follows a recent plunge in the global prices of oil and natural gas, according to the Ministry of Trade, Industry and Energy.

“Despite a recent appreciation of the Korean won, there exist a few factors, such as a cut in global oil prices, that warrant a reduction of natural gas prices,” it said in a press release.

The announcement comes one day after Vice Minister Moon Jae-do said the government was considering lowering the price of natural gas, also noting the price is set every two months to account for any change greater than 3 percent in import prices.

KOGAS supplies liquefied natural gas, which, unlike liquefied petroleum gas, is mostly created in the process of refining crude oil, making it more susceptible to oil prices, according to ministry officials. (Yonhap)