Seoul Gasoline Price Surpasses 1,800 Won per Liter for the First Time Since Fuel Tax Reduction Measures

As of Morning, 1801.4 Won per Liter
Effect of Fuel Tax Reduction 'Drops Sharply'

Fuel price information is displayed at a gas station in downtown Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Moon Chaeseok] The average gasoline price in Seoul surpassed 1,800 KRW per liter again on the 21st. This marks a return to the 1,800 KRW range after about two months since the government's fuel tax reduction measure was implemented.

According to the Korea National Oil Corporation's oil price information site Opinet, as of the morning of the day, the average gasoline price in Seoul was 1,801.4 KRW per liter, an increase of 4.58 KRW from the previous day. The last time Seoul's gasoline price was in the 1,800 KRW range was 14 weeks ago, on November 12 of last year (1,818 KRW), when the fuel tax reduction measure was implemented. At SK Energy Seonam Gas Station and GS Caltex Seogye Gas Station, gasoline prices even exceeded 2,500 KRW per liter.

The national average gasoline price recorded 1,735.2 KRW per liter, up 1.35 KRW from the previous day.

Nationwide gasoline prices hit a seven-year high of 1,807.0 KRW per liter in the second week of November last year, the highest since September 2014. After that, the fuel tax reduction measure was implemented on the 12th of the same month, leading to nine consecutive weeks of price declines. The rate of price decrease gradually narrowed, and in Seoul, prices began to rise from the second week of last month, one week earlier than the national average. From the third week of last month, the national average gasoline price has also been increasing. This is the first time since the fuel tax reduction that nationwide gasoline prices have exceeded the 1,700 KRW level.

Since the beginning of this year, geopolitical factors such as concerns over Russia's invasion of Ukraine have caused international oil prices to surge, leading to a corresponding rise in domestic oil prices.

As signs emerge that the effect of the fuel tax reduction measure is diminishing, the government is considering extending the fuel tax reduction. However, there are concerns that if the current rapid rise in oil prices and the won's depreciation due to a strong exchange rate continue, the speed of domestic fuel price increases will accelerate, and extending the fuel tax reduction may not have a significant effect.

This content was produced with the assistance of AI translation services.