Gasoline and Diesel Both Reach 2000 Won Era... Prices Rise Over 20 Won This Week

3 Consecutive Weeks of Increase
"Impact of International Oil Prices and High Exchange Rates... Continued High Oil Prices"

Gasoline and diesel prices posted at a gas station in Seoul on the 15th. (Image source=Yonhap News)

[Asia Economy Reporter Moon Chaeseok] Domestic gasoline and diesel prices have shown an upward trend for three consecutive weeks.

According to the Korea National Oil Corporation's oil price information service OPINET on the 28th, the average retail price of gasoline nationwide for the fourth week of May (22nd-26th) was 1,993.8 KRW per liter, up 30.2 KRW from the previous week. In the first week of this month, when the fuel tax reduction rate was expanded from the existing 20% to 30%, gasoline prices fell by 44.2 KRW compared to the previous week, but prices have risen for three consecutive weeks since then.

The weekly increase in gasoline prices has been growing, with 1.9 KRW in the second week of this month, 21.0 KRW last week, and 30.2 KRW this week. The nationwide average gasoline price surpassed the 2,000 KRW mark again as of the 26th of this month, and as of the afternoon of the previous day, it was 2,004.6 KRW per liter. The average gasoline price in Seoul, the region with the highest domestic price, rose by 40.6 KRW to 2,064.0 KRW per liter this week compared to the previous week, while Daegu, the region with the lowest price, recorded 1,966.4 KRW, up 29.4 KRW from the previous week. By brand, GS Caltex gas stations were the most expensive with an average of 2,002.8 KRW per liter, while budget gas stations were the cheapest at 1,971.8 KRW.

The average diesel price for the week rose by 24.0 KRW to 2,000.3 KRW per liter compared to the previous week. Due to supply disruptions in the international diesel market causing price surges, domestic diesel prices surpassed gasoline prices on the 11th of this month, and notably, on the 24th, diesel prices broke the 2,000 KRW per liter mark for the first time in history. As of the afternoon of the previous day, the nationwide average diesel price was 2,005.1 KRW per liter. The Korea Petroleum Association stated, "Domestic oil prices continue to rise due to high international oil prices and a recent significant increase in the exchange rate," and added, "With the entry into the summer 'driving season,' demand for transportation fuels such as gasoline and diesel will increase further, so the high oil price situation is expected to continue."

Meanwhile, international oil prices have somewhat stalled due to China's strengthened COVID-19 quarantine measures and Hungary's opposition to the ban on Russian oil imports.

The Dubai crude oil price, which serves as the benchmark for domestic imported crude, rose by 0.1 dollars to 108.9 dollars per barrel compared to the previous week, while the international average gasoline price fell by 6.1 dollars to 140.3 dollars per barrel.

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