It was confirmed on the 2nd that some of the 246 hydrogen refueling stations nationwide raised the price of transportation hydrogen by 3.6% starting on the 1st of this month. It is the first significant increase since the Middle East war. As hydrogen production costs rose, hydrogen producers raised supply prices, prompting station operators to raise retail prices as well. Industry officials say the price hike trend is highly likely to spread nationwide.
According to reporting compiled by ChosunBiz on the 2nd, some of the 246 hydrogen refueling stations nationwide raised the retail hydrogen price by 3.6% to 12,595 won starting on the 1st of this month. Since the Middle East war, the retail price of hydrogen has been effectively frozen. According to the Korea Petroleum Quality & Distribution Authority (K-Petro) hydrogen distribution information system, as of the 1st the nationwide average retail hydrogen price at stations is 10,310 won. It is similar to the price (10,296 won) on Feb. 27, just before the war.
Hydrogen retail prices are set through consultation between hydrogen producers and the operators of the hydrogen refueling stations that receive supply. The recent partial increase is due to higher costs caused by the Middle East war. The price of gas, a feedstock for hydrogen production, rose 69.4% compared with before the war. The price of oil, which yields naphtha, another key feedstock, also climbed more than 37% from before the war. Diesel needed for long-distance transport rose 25.6% compared with before the war.
Even so, hydrogen stations had kept prices frozen because the government, concerned about expanding hydrogen vehicle adoption and the burden on consumer prices, recommended refraining from increases. For the Ministry of Climate, Energy and Environment's push to expand the share of renewable energy, a hydrogen price increase is also a burden. As of April this year, there are 46,834 hydrogen vehicles nationwide. The government has said it will supply 300,000 hydrogen vehicles by 2030 and build at least 660 hydrogen refueling stations.
Industry officials expect the hydrogen price increase to spread nationwide. An operator that recently raised its hydrogen refueling price said, "Most companies that had held out despite higher costs after the war are now inclined to raise prices," adding, "After watching others, as early as June–July, or by the second half at the latest, more companies are likely to move to raise prices."