Diesel Followed by Gasoline Hits Record High Price... 2,063 Won per Liter

Gasoline at 2,063.45 KRW per liter... Highest Price in 10 Years
Diesel Also at 2,062.28 KRW per Liter... Daily Record Highs Continued

On the 6th, at a gas station in Seoul where gasoline and diesel prices have been rising for four consecutive weeks, gasoline is being sold at 2,069 KRW per liter and diesel at 1,999 KRW per liter. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Moon Chaeseok] Gasoline prices sold at domestic gas stations have reached an all-time high in over 10 years. Diesel prices have been breaking daily records for nearly a month. Due to the rise in international oil prices following Russia's invasion of Ukraine, domestic fuel prices continue to surge.

According to the Korea National Oil Corporation's oil price information site Opinet, as of noon on the 11th, the nationwide average gasoline price was 2,063.45 KRW per liter, an increase of 6.66 KRW from the previous day. This surpasses the previous record of 2,062.55 KRW set on April 18, 2012, for the first time in over 10 years. Domestic gasoline prices crossed the 2,000 KRW per liter mark on March 15 for the first time in about 9 years and 5 months. Since then, gasoline prices, which fluctuated briefly around the 2,000 KRW level, have been rising sharply due to the increase in international oil prices.

At the same time, the nationwide average diesel price rose by 7.91 KRW from the previous day to 2,062.28 KRW per liter. Diesel prices recorded 1,953.29 KRW per liter on the 12th of last month, breaking the previous record of 1,947.75 KRW set on July 16, 2008, for the first time in about 14 years, and have been setting new records daily since then. On January 1, domestic gasoline and diesel prices were 1,623.79 KRW and 1,442.42 KRW per liter, respectively. This means prices have increased by more than 420 KRW and 600 KRW respectively in about five months. The year-to-date increase rates are 26.1% and 41.6%, respectively.

The upward trend in gasoline and diesel prices is expected to continue for the time being. Demand remains strong, and concerns over supply shortages due to the European Union (EU)'s sanctions on Russian crude oil have pushed international oil prices above 120 dollars per barrel. Although OPEC+ (Organization of the Petroleum Exporting Countries plus) plans to increase production by about 50% in July and August, it has not met previous production targets, leading to a pessimistic outlook. There are also forecasts that international oil prices could exceed 150 dollars per barrel as U.S. crude oil inventories fall below expectations.

Since the government expanded the fuel tax reduction rate to the maximum of 30% from the 1st of last month, the effect has been limited due to the larger rise in international oil prices.

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