Second Maximum Oil Prices Set: Gasoline at 1,934 Won, Diesel at 1,923 Won...Up by 210 Won Each

Price Increase Driven by Global Oil Costs...
Fuel Tax Cuts to Curb the Rise
Consumer Prices Expected to Approach 2,000 Won

On the 6th, gasoline prices are displayed at a gas station in downtown Seoul as international oil prices rise due to the war aftermath between the United States and Iran. 2026.03.06 Photo by Dongju Yoon

The second round of petroleum ceiling prices has been set at 1,934 won per liter for gasoline, 1,923 won per liter for diesel, and 1,530 won per liter for kerosene. The new prices will take effect from midnight on the 27th. While prices have generally increased due to the reflection of higher international oil prices, the government has announced that it will curb the pace of price hikes by expanding the reduction range of the fuel tax.

On the 26th, the Ministry of Trade, Industry and Energy announced these details in the "Task Force for Special Management of Livelihood Prices" meeting, unveiling the "Second Petroleum Ceiling Price Designation Plan." This new ceiling price includes not only automotive diesel but also marine diesel, taking into consideration the need to relieve fuel cost burdens on fishermen.

These second-round ceiling prices were revised to reflect the rise in international oil prices since the Middle East war, compared to the first round (gasoline 1,724 won, diesel 1,713 won, kerosene 1,320 won). However, the expanded fuel tax reduction has partially absorbed the burden on consumers. The reduction rate for gasoline was increased from 7% to 15%, and for diesel from 10% to 25%.

Yang Ki-uk, Director General for Industrial Resources and Security at the Ministry of Industry, explained, "The prices have not simply reflected the increase in international prices; they have been set as a policy decision comprehensively considering the burden on the national economy."

The government analyzed that, compared to a scenario without the ceiling price system, the pump prices would be about 200 won lower for gasoline and up to 500 won lower for diesel and kerosene.

Given gas station margins and the distribution structure, it has become inevitable that consumer prices will approach or even exceed 2,000 won per liter. Since the ceiling price is based on the wholesale price at which refiners supply gas stations, the actual pump price also reflects gas station margins and operating costs. Yang also explained, "Since this is the supply price, the final consumer price may be set at just over 2,000 won per liter." However, he added, "We did not set 2,000 won as an absolute threshold."

He also emphasized the background of applying differentiated rates for each fuel type. Yang stated, "Diesel and kerosene are directly linked to livelihood users such as truck drivers and farmers, as well as heating-vulnerable groups," and added, "We did not fully reflect the rise in international prices and instead expanded the reduction range as a supportive measure."

Regarding the similar increase—about 200 won—for each fuel type, he explained, "It was not intentionally set to be the same," and, "The similar levels resulted from the process of reflecting international prices (MOPS), fuel tax, and policy adjustments."

As for the effect of the first ceiling price round, he evaluated, "It served as a buffer to a certain extent, easing the sudden transmission of the international oil price surge to people's lives and the economy." However, he also added, "We humbly accept that there are a variety of perspectives regarding the policy."

The timing at which these changes will be felt at the pump may differ depending on gas station inventory levels. Yang said, "Gas stations typically hold inventory for 5 days to 2 weeks," and, "It is not appropriate to raise prices immediately; price adjustments are likely to be gradually reflected starting two to three days later."

Regarding the phenomenon of gas stations raising prices even before the second round of announced prices, he commented, "There are various reasons, such as inventory status or business judgement," but also warned, "If stations raise prices while still holding lower-priced inventory, it can be problematic."

The government also plans to strengthen crackdowns on market-disrupting activities after the system is implemented. The government, consumer groups, and public institutions will jointly monitor prices at approximately 10,000 gas stations nationwide on a daily basis, and if excessive price increases or indications of hoarding are detected, they will carry out on-site inspections.

Yang stressed, "We will closely scrutinize cases where there is still low-priced inventory but prices are rapidly hiked," adding, "We will respond to market disorder with a zero-tolerance policy."

Meanwhile, the government also called for public participation in energy conservation alongside price stabilization through the ceiling price system. The plan is to jointly respond to the energy crisis by promoting demand reduction efforts such as implementing a five-day work system in the public sector and expanding the use of public transportation.

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