briquette Price Status and Structure

in the 80s, a piece of briquette cost around 150 won, but nowadays it has risen to around 1,000 won. The consumer price of briquettes is the factory price plus sales commission, transportation, and delivery costs.

although the government froze the factory price of briquettes at 639 won until this year, rising labor and logistics costs have led to high consumer prices. In areas with high briquette delivery costs, the price per piece can reach 1,700 won.

to make matters worse, the government has decided to reduce the briquette subsidy as part of its climate change response and energy transition policy. The subsidy will be reduced by 100 won next year and the year after, and the average price of briquettes is expected to exceed 1,200 won by 2027.

why briquette prices are rising

briquette factory closures

in the 60s, there were about 400 briquette factories across the country, but now there are only 26 left. there are only six in Gyeongbuk, three in Chungbuk, three in Gangwon, and one each in Dongducheon, Daejeon, Budae, Chungnam, and Jeonju, Jeonbuk.

impact of coal industry rationalization policies

in the run-up to the '88 Olympics, the government implemented a coal industry rationalization policy, citing environmental regulations and rising national income. The widespread use of oil boilers and city gas has since led to a decline in the number of households using briquettes.

with the government's program to replace briquette boilers, there are now fewer than 60,000 households using briquettes. as demand declined, factories closed one by one.

anthracite production at risk

anthracite coal, the raw material for briquettes, is also in danger of being cut off from domestic production. on July 1 of this year, the last state-owned coal mine, Samcheok Dokye Mine, closed down, leaving only one private coal mine, Samcheok Gyeongdong Sangdeok Mine, in the country.

currently, there are about 2.2 million tons in stockpiles at the government level, including the Korea National Coal Corporation. if we calculate the annual briquette usage at an average of 300,000 tons, we can survive for about seven years. but after that, it's a problem.

who needs briquettes?

the reason why the briquette supply crisis is so severe is that there are still people who desperately need briquettes, mainly those living in shanty towns, shanty villages, dal-dong neighborhoods, semi-subterranean, and unauthorized housing.

many of the briquette heating vulnerable people are elderly people living alone, with an average age of 80 and an average income of about 300,000 won per month. even if the government replaced them with oil boilers, they still use briquette stoves in Banjangha because they cannot afford the fuel costs.

the future outlook

the outlook for briquette prices is not bright: as subsidies continue to decrease and factories continue to close, price increases seem inevitable. it is urgent for the government to come up with support measures.

frequently asked questions

Q1. How much will a briquette cost? A1. As of 2024, the consumer price of briquettes is expected to be around 1,000 won, with prices rising to 1,700 won in areas where delivery is difficult.

Q2. How many briquette factories are left? A2. There are only 26 left in the country. this is down from 400 in the 60s.

Q3. How big is the anthracite coal stockpile? A3. The government stockpile is about 2.2 million tons, which is enough for about seven years of supply at current usage.

Q4. How many households use briquettes? A4. Currently estimated to be less than 60,000 households.

Q5. How much will the briquette subsidy be reduced? A5. It will be reduced by 100 won each next year and the year after that.

conclusion

the rise in briquette prices is the result of a combination of factory closures, subsidy reductions, and disruptions in raw material production. we need to pay attention to ensure that vulnerable people don't have a harder time surviving the winter.

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