National Average Gasoline Price 1,968 Won per Liter... Slight Decline for 4 Consecutive Weeks

9.3 Won Drop from Last Week
Only Seoul Maintains 2000 Won Range

Next Month's Fuel Tax Cut Expanded to 30%
Additional Reduction Effect of 83 Won per Liter for Gasoline, 58 Won for Diesel

On the 17th, the fuel price information was displayed at a gas station in downtown Seoul. / Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Moon Chaeseok] Domestic gasoline prices at gas stations continued to decline slightly this week, marking the fourth consecutive week of decreases.

According to Opinet, the oil price information service of the Korea National Oil Corporation, the average retail price of gasoline nationwide during the third week of April (17-21) recorded 1,967.8 KRW per liter, down 9.3 KRW from the previous week. Domestic gasoline prices had risen for 10 consecutive weeks from the beginning of the year until the end of last month, reaching 2,004 KRW per liter, the highest level in 10 years since 2012, influenced by international oil price trends. Since then, prices have shifted to a downward trend due to factors such as the U.S.-led release of strategic reserves.

The recent weekly declines in gasoline prices were 9.6 KRW two weeks ago, 13.3 KRW last week, and 9.3 KRW this week, dropping by 1 to 2 KRW per liter daily. As of the afternoon of the previous day, the nationwide average gasoline price was 1,966.6 KRW. The average gasoline price in Seoul, the region with the highest prices, fell by 6.4 KRW to 2,028.4 KRW per liter this week compared to the previous week, while Daegu, the region with the lowest prices, dropped by 11.2 KRW to 1,940.9 KRW. Seoul remains the only area with average gasoline prices above 2,000 KRW per liter. By brand, GS Caltex gas stations were the most expensive at an average of 1,976.4 KRW per liter, while budget gas stations were the cheapest at 1,940.0 KRW.

The nationwide average diesel price this week also fell by 3.0 KRW from the previous week to 1,899.6 KRW per liter. However, international oil prices, which had recently stabilized, turned upward this week due to the prolonged Russia-Ukraine conflict. Dubai crude oil, the benchmark for domestic imported crude, rose by 6.1 USD to 107.1 USD per barrel compared to the previous week, and the international average gasoline price increased by 7.8 USD to 128.0 USD per barrel. The Korea National Oil Corporation analyzed that "international oil prices rose this week due to Germany's announcement to reduce imports of Russian oil and the deadlock in Russia-Ukraine ceasefire negotiations."

Meanwhile, the government has decided to expand the fuel tax reduction rate from the current 20% to 30% starting next month on the 1st to stabilize the sharply rising gasoline prices earlier this year. Accordingly, gasoline prices will be further reduced by 83 KRW per liter, and diesel by 58 KRW per liter. There is an expected lag of about two weeks before the fuel tax reduction is fully reflected in retail gas station prices. Refiners have agreed to immediately apply the tax reduction at approximately 760 company-operated gas stations nationwide starting next month on the 1st as part of cooperation with government policy. However, most independently owned gas stations, which make up the majority, are expected to lower prices only after exhausting their existing inventory purchased before the additional tax cut, so it may take some time before the full effect of the additional fuel tax reduction is realized.

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