'Ukraine Invasion' Pushes Nationwide Gasoline Price Over 1900 Won per Liter

Average 1904.3 KRW on the Morning of the 10th
First Time in 8 Years and 5 Months Since October 2013

Seoul Likely to Surpass 2000 KRW Soon

A maternity hospital in the southern Ukrainian port city of Mariupol was reduced to ruins on the 9th (local time) due to indiscriminate bombing by Russian forces. (Image source=AP Yonhap News)

[Asia Economy Reporter Moon Chaeseok] Due to the aftermath of Russia's invasion of Ukraine, international oil prices have surged, pushing domestic gasoline prices at gas stations in South Korea above 1,900 KRW per liter.

According to the Korea National Oil Corporation's oil price information site Opinet, as of 10:40 a.m. on the 10th, the nationwide average gasoline price at gas stations recorded 1,904.35 KRW per liter, an increase of 11.95 KRW from the previous day.

This is the first time in about 8 years and 5 months since the third week of October 2013 (1,902.55 KRW) that the nationwide gasoline price has exceeded 1,900 KRW per liter. The highest ever recorded was in 2012 when the nationwide gasoline price surpassed 2,000 KRW per liter. Due to the surge in international oil prices, the price exceeded 2,000 KRW per liter from August to October 2012. After that, from November 2012 to early October 2014, the price remained around 1,800 to 1,900 KRW per liter for about two years.

Average nationwide gasoline price posted on Opinet, the oil price information site managed by Korea National Oil Corporation. (Data provided by Korea National Oil Corporation)

Domestic gasoline prices had been falling for nine consecutive weeks following the fuel tax reduction measure implemented on November 12 last year but turned upward earlier this year. Recently, due to the Ukraine crisis, the rapid rise in international oil prices has accelerated the pace of price increases. On November 11 last year, the day before the fuel tax reduction measure, prices had already jumped well above 1,810 KRW. Gasoline prices in Jeju Island and Seoul surpassed 1,900 KRW per liter last week, and this week, Busan, Daejeon, Incheon, Gyeonggi, and Ulsan also crossed the 1,900 KRW threshold. Notably, Seoul recorded the highest price nationwide at 1,978.62 KRW per liter as of this day, up 17.79 KRW from the previous day.

The highest-priced gas station nationwide is the SK Energy Seonam Gas Station in Jung-gu, Seoul, currently priced at 2,829 KRW per liter, followed by the GS Caltex Seogye Gas Station in Yongsan-gu at 2,820 KRW per liter.

In response, the government has decided to extend the 20% fuel tax reduction measure for an additional three months until the end of July. They are also considering expanding the tax reduction rate depending on future oil price trends. If the reduction is increased to the maximum of 30%, gasoline prices would decrease by 305 KRW per liter.

The sharp rise in international oil prices, which had reached around 130 dollars per barrel, has somewhat eased. This is due to expectations of a resolution to the Russia-Ukraine situation and the possibility of increased production by oil-producing countries. The price of West Texas Intermediate (WTI) crude oil closed at 108.70 dollars per barrel on the 9th (local time), down 15 dollars (12.1%) from the previous day.

However, volatility remains significant. The price of Dubai crude oil, which serves as the benchmark for oil imported into Korea, fell to 108.84 dollars per barrel on the 4th but has fluctuated, rising to 125.19 dollars on the 7th, 122.99 dollars on the 8th, and 127.86 dollars on the 9th.

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