The price of liquefied natural gas will be cut by an average 10.3 percent from the start of next month, the government said Thursday, marking a third price reduction in just five months.

The latest price cut, along with two previous reductions, reflects a drop in global oil prices, according to the Ministry of Trade, Industry and Energy.

"The rate cut is the outcome of efforts to quickly reflect a cut in import prices due to a drop in global oil prices," it said in a press release.

Unlike liquefied petroleum gas, LNG is produced mostly by refining crude oil, closely linking its price to that of oil, according to the ministry.

The ministry earlier said the average price of Dubai crude, which accounts for about 86 percent of the country's total oil imports, plunged from an average $104.40 per barrel in March 2014 to $54.70 last month.

The price of LNG is adjusted every two months to reflect any change greater than 3 percent in the price of supplies, but the ministry said the exact rate of the cut was decided at a policy coordination meeting with the ruling Saenuri Party, held in Seoul earlier Thursday.

The latest rate cut marks the third of its kind since January when the price of LNG supplied by the state-run Korea Gas Corp. was cut by an average 5.9 percent. It was again reduced by an average 10.1 percent at the start of March.

The ministry said the three price reductions will allow each of the country's 15.6 million households to save 95,000 won ($87.72) per year on their gas bills. (Yonhap)