Unusual Gasoline Prices... Only 3 Places Nationwide with Gasoline Under 2000 Won

A gas station in downtown Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Hwang Sumi] The rise in domestic fuel prices due to the soaring international oil prices is fierce. Gasoline and diesel prices have increased for six consecutive weeks, reaching an average of over 2,100 KRW per liter nationwide. Among gas stations across the country, only three stations had gasoline prices below 2,000 KRW, and some stations saw diesel prices exceed 3,000 KRW per liter.

According to the Korea National Oil Corporation's oil price information service OPINET on the 18th, the average selling price of gasoline at gas stations nationwide was recorded at 2,103.99 KRW per liter as of that day. Domestic gasoline prices have been setting new records daily after surpassing the all-time high of 2,062.55 KRW (recorded 10 years and 2 months ago) on the 11th (2,064.59 KRW).

On that day, the lowest price nationwide was 1,995 KRW per liter, and the highest was 2,997 KRW, showing a 50.2% difference. In particular, when looking at individual gas stations nationwide, only three stations had gasoline prices below 2,000 KRW. Haeri Nonghyup Gas Station (NH Oil) in Gochang-gun, Jeonbuk, and KK Kumho Gas Station (SK Energy) in Yeongcheon-si, Gyeongbuk, were the cheapest at 1,995 KRW per liter. Following them was Sangpyeong Gas Station (Discount Gas Station) in Eumseong-gun, Chungbuk, at 1,999 KRW. The most expensive gasoline was sold at Seonam Gas Station (SK Energy) in Jung-gu, Seoul.

Diesel prices also soared to 2,111.48 KRW per liter as of that day. The average domestic diesel price has been hitting new highs daily since surpassing the 2,000 KRW mark for the first time last month.

Among gas stations, Taeyang Gas Station (Hyundai Oilbank) in Yeongcheon-si, Gyeongbuk, had the lowest diesel price at 1,928 KRW per liter. On the other hand, Seonam Gas Station in Jung-gu, Seoul, had the highest diesel price at 3,083 KRW. The price difference reached 60%.

Domestic fuel prices have been rising daily due to the supply and demand difficulties of petroleum products triggered by Russia's invasion of Ukraine. As global sanctions against Russia, the world's third-largest oil producer, continue, supply uncertainties have increased, leading to a decrease in crude oil inventories. Additionally, with the easing of lockdowns in major Chinese cities and the arrival of the U.S. driving season (June to August), crude oil demand is rising, and the industry expects the upward trend to continue for the time being.

Meanwhile, the government has taken steps to curb soaring fuel prices by further reducing the fuel tax. According to the Ministry of Economy and Finance on the 18th, the government is considering lowering the fuel tax reduction rate from the current 30% to the legal maximum of 37%.

Before the fuel tax reduction, the government imposed 820 KRW per liter on gasoline. As international oil prices rose at the end of last year, the government first reduced the fuel tax by 20%, then further lowered it to the legal limit of 30% earlier this year. Currently, the fuel tax is 573 KRW per liter for gasoline. If the fuel tax is reduced to 37%, it will decrease by an additional 57 KRW from the current rate.

However, some argue that despite the government's additional fuel tax reduction measures, the effect felt by consumers may not be significant.

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