'Ukraine Invasion' Pushes Nationwide Gasoline Prices Over 2000 Won per Liter for First Time in 10 Years... 'Kyiv Invasion' Impact Has Not Even Begun (Comprehensive)

April 15, 4 PM Average 2000.95 KRW... Up 12.91 KRW from Previous Day
International Oil Prices Reflect with 2-3 Week Lag... Possibility of Further Increase

On the 14th, fuel price information is displayed at a gas station in downtown Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Moon Chaeseok] Due to the surge in international oil prices following Russia's invasion of Ukraine, domestic gasoline prices at gas stations have surpassed 2,000 KRW per liter for the first time in 10 years. Considering that international oil price trends are reflected in domestic gasoline prices after 2 to 3 weeks, the invasion of Kyiv (Kiyev), the capital of Ukraine, by Russia has not yet been fully factored into the prices, suggesting that prices may rise further in the future.

According to the Korea National Oil Corporation's oil price information site Opinet, as of 4 p.m. on the 15th, the average gasoline price at gas stations nationwide was 2,000.95 KRW per liter, up 12.91 KRW from the previous day. This is the first time in 10 years since August to October 2012 that the nationwide gasoline price has exceeded 2,000 KRW per liter. At that time, gasoline prices soared due to a sharp rise in international oil prices, and the same pattern is occurring now.

Domestic gasoline prices had been falling for nine consecutive weeks after the government implemented a fuel tax reduction measure in November and December last year but began to rise again earlier this year. The increase has accelerated due to the Ukraine situation. On November 11 last year, just before the fuel tax reduction measure, the average domestic gasoline price was 1,810 KRW. This means prices have risen beyond the levels before the government’s intervention.

At the same time, Jeju recorded the highest average price nationwide at 2,106 KRW. Seoul also continued its high-price trend with 2,086 KRW. Other regions that surpassed the 2,000 KRW mark include Incheon (2,023 KRW), Daejeon (2,020 KRW), Gyeonggi (2,016 KRW), Ulsan (2,013 KRW), and Busan (2,004 KRW).

By gas station, the highest price nationwide is at Seoul SK Energy Seonam Gas Station at 2,829 KRW. Following are Seoul GS Seogye Gas Station at 2,770 KRW and Seoul SK Toegye-ro Gas Station at 2,654 KRW. Outside Seoul, the highest price is at S-Oil Gudoil Gas Station Seowon in Cheongju, Chungcheongbuk-do, at 2,522 KRW.

In response, the government has extended the 20% fuel tax reduction, originally set to expire at the end of next month, by three months until the end of July and is considering whether to increase the reduction to 30%. If the reduction is expanded to 30%, gasoline prices could drop by up to 305 KRW per liter.

Crude oil prices are showing some signs of stabilization. Dubai crude spot prices, which directly affect domestic petroleum product prices, closed at $109.88 per barrel on the New York Mercantile Exchange (NYMEX) on the 14th (local time). After rising to $127.86 per barrel on the 9th of this month when the U.S. announced a ban on Russian oil imports, prices have fallen for three consecutive trading days.

However, volatility remains high, with refining margins, a key profit indicator for refiners, surging by $6.4 per barrel in one week, indicating that price uncertainty due to the Ukraine situation is expected to continue for the time being.

Considering that domestic gasoline prices reflect international oil prices with a 2 to 3 week delay, concerns are emerging that gasoline prices may rise further. Russia began its invasion of Ukraine on the 24th of last month and continues coordinated attacks from the south, east, and north, including on the capital Kyiv.

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