Rising Oil Prices Halt... Will They Drop Below 2000 Won Next Week?

International Oil Prices Continue Downward Trend

The surge in fuel prices has stopped after 9 weeks as the fuel tax cut was expanded to 37%. According to Opinet, the oil price information service of the Korea National Oil Corporation, the average retail price of gasoline at gas stations nationwide in the first week of July was 2,116.8 KRW per liter, down 20.9 KRW from the previous week. On the 10th, a gas station in Seoul was selling gasoline at 2,079 KRW and diesel at 2,109 KRW per liter. Photo by Moon Honam munonam@

[Asia Economy Reporter Oh Hyung-gil] Domestic gasoline prices at gas stations have dropped by nearly 100 KRW per liter this month due to additional cuts in the fuel tax and a decline in international prices. As domestic refiners have recently lowered the supply price of gasoline at gas stations in response to the falling international oil prices, there are expectations that the downward trend in domestic fuel prices will continue for the time being.

According to the Korea National Oil Corporation's oil price information service OPINET on the 16th, the average retail price of gasoline nationwide from July 10 to 14 was 2,080.7 KRW per liter, down 36.1 KRW from the previous week.

Domestic gasoline prices had risen for eight consecutive weeks since the first week of May but fell for two consecutive weeks this month due to the expanded fuel tax cut (from 30% to 37%) and the decline in international petroleum product prices.

As of 5 p.m. the previous day, the nationwide average gasoline price was 2,049.0 KRW per liter, down 12.8 KRW from the previous day. Gasoline prices dropped by 95.9 KRW compared to June 30 (2,144.9 KRW), just before the additional fuel tax cut.

The average gasoline price in Seoul, the region with the highest prices, this week was 2,132.9 KRW per liter, down 34.9 KRW from last week, while Daegu, the region with the lowest prices, recorded 2,042.4 KRW, down 44.1 KRW. By brand, SK Energy gas stations were the most expensive with an average of 2,088.5 KRW, and budget gas stations were the cheapest at 2,053.4 KRW.

Domestic diesel prices also continued their downward trend, similar to gasoline. The average diesel price this week was 2,123.3 KRW per liter, down 27.1 KRW from last week.

As of 5 p.m. the previous day, the nationwide average diesel price was 2,099.7 KRW per liter, down 9.2 KRW from the previous day. Compared to June 30 (2,167.7 KRW), just before the additional fuel tax cut, diesel prices fell by 68 KRW.

Recently, refiners have lowered the supply prices of domestic gasoline and diesel by more than 100 KRW per liter, reflecting the decline in international petroleum product prices. A source from the domestic refining industry said, "With the government's expanded fuel tax cut effect combined with the drop in international prices, domestic oil prices will continue to fall," adding, "Gasoline prices may fall below the 2,000 KRW mark sometime next week."

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