War Flips Fuel Prices: "When Gasoline Rises 200 Won, Diesel Jumps 350 Won" [Middle East Energy Shock] ①

Aftermath of War Drives Up International Oil Prices
Broader Demand Base for Diesel Results in Sharper Price Increases
Diesel as the Only Alternative Fuel to LNG for Power Generation
Concerns Grow Over Visible 'Energy Inflation'

As international oil prices surge due to the ongoing war between the United States and Iran, a 'price reversal' phenomenon has emerged where diesel prices have surpassed those of gasoline. The instability in the global energy market is being rapidly reflected in domestic fuel prices, leading some gas stations to record diesel prices higher than gasoline.

For example, at Sejin Gas Station in Seongnam, Gyeonggi Province, as of the 4th, gasoline was sold at 1,794 won per liter, while diesel was priced at 1,806 won. This means diesel was 12 won more expensive than gasoline.

On March 5, 2026, at a gas station in downtown Seoul, gasoline prices are displayed amid rising international oil prices due to the war between the United States and Iran. Photo by Dongjoo Yoon

As international oil prices fluctuate due to the war between the United States and Iran, domestic fuel prices are also rising quickly. With fuel prices jumping by more than 100 won per liter in just one day, many vehicles are lining up at gas stations to refuel before prices increase further.

On the afternoon of the 4th, dozens of cars were lined up at a gas station in Yeongdeungpo-gu, Seoul. This gas station was still selling gasoline in the 1,600 won range, as it had not yet raised its prices. A station employee said, "Between March 2 and 3, the price of fuel delivered to the gas station rose by 200 won for gasoline and 350 won for diesel," adding, "The national average price is 1,700 won today, but from next week it will likely rise to over 1,900 won."

Drivers are also increasingly feeling the burden. Mr. B, an office worker who drives a diesel car, said after checking prices at a gas station recently, "I didn't realize fuel prices had risen this much. It reminds me of the time after the outbreak of the Russia-Ukraine war in 2022, when diesel prices climbed to as high as 2,200 won."

According to Opinet, the oil price information system of the Korea Petroleum Association, as of the 5th, the national average price for gasoline was 1,807 won, while diesel was 1,785 won. The rate of increase for diesel was much steeper. Compared to February 28, diesel prices rose by 187 won, outpacing the 114 won increase in gasoline prices. In Seoul, where energy demand is especially high, the increase for diesel was even more pronounced. During the same period, the price of gasoline in Seoul rose by 124 won, while diesel soared by 201 won, making diesel about 80 won more expensive.

The reason diesel prices are surpassing gasoline is due to concerns over supply disruptions following the spike in international oil prices. Unlike gasoline, diesel is widely used not only for vehicles but also for heating, power generation, and ships, resulting in diversified demand. Because there are more sources of demand, supply conditions are more sensitive. Moreover, diesel is the only alternative power generation fuel to natural gas, so in the current situation, price increases for diesel are outpacing those for gasoline.

An official from the Korea Petroleum Association explained, "When the Ukraine war broke out in the past, diesel prices soared as Russia controlled the supply of liquefied natural gas (LNG) to Europe," and added, "It is a similar situation now, as diesel is used as a substitute for LNG for power generation, leading to rising prices."

With oil prices becoming unstable, the industrial sector is concerned that, beyond simple price volatility, global supply and demand structures will also be affected, making 'energy inflation' increasingly visible. Global oil demand is about 100 million barrels, while the amount of oil passing through the Strait of Hormuz is 20 million barrels per day. If the blockade of the Strait of Hormuz is prolonged, 20% of the current supply could disappear.

The above photo is not directly related to the article. Photo by Younghan Heo younghan@

In particular, if the Strait of Hormuz remains blocked for about a month, it is estimated that about 90 million barrels of crude oil imports to Korea would be disrupted. This amount is roughly equivalent to Korea's oil consumption for one month (31 days).

According to the Korea Ocean Business Corporation, if passage through the Strait of Hormuz is suspended for one month, crude oil tankers would face disruptions to 45 voyages (the number of round trips along a set route) and LNG carriers to 8 voyages. This is expected to adversely affect Korea's crude oil supply and, due to the disruption of LNG carrier operations, increase the risk of supply instability during the winter season.

Even if ships use alternative routes, the shipping schedule from the Middle East to Korea, which normally takes 25 days, is expected to increase to at least 35 days or up to 60 days. Rising freight rates are expected to further amplify price fluctuations. Based on past cases, the Korea Ocean Business Corporation predicts that even if passage through the Strait of Hormuz is allowed, it will take about twice the duration of the suspension period for operations to return to normal. The agency warned that a temporary release of backlogged cargo following the stabilization of the situation could intensify 'bottleneck' effects and worsen vessel shortages. An industry official commented, "Not only the energy and shipping industries but also projects exporting to the Middle East will face considerable challenges. Particularly in the petrochemical industry, which has just begun restructuring, difficulties are expected to intensify."

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