Despite Fuel Tax Cut, Gasoline Prices Near 2,000 Won Mark... "5-Day Vehicle Rotation Extended to Outdoor Parking Lots" (Comprehensive)

Government Raises Maximum Gasoline and Diesel Prices by 210 Won Each
Gasoline Prices Expected to Exceed 2,000 Won per Liter Starting This Weekend

The government announced the second maximum price for petroleum products, raising the price of gasoline and diesel by 210 won per liter. On March 27, 2026, a gas station in Seoul is selling gasoline at 2,170 won per liter and diesel at 2,180 won per liter. Photo by Jinhyung Kang

Starting at midnight on March 27, the government raised the maximum price for petroleum products—the upper limit on the price refiners supply to gas stations—to 1,934 won per liter for gasoline and 1,923 won per liter for diesel. As a result, it is expected that retail gas station prices will soon surpass the 2,000 won mark once again. Additionally, with the deadline approaching for the final ultimatum to Iran—previously extended by U.S. President Donald Trump—international oil prices have rebounded, further increasing volatility. This is fueling concern that gasoline prices in the 2,000 won range may become the new normal.

According to Opinet, the oil price information system, as of 9 a.m. on March 27, the nationwide average gasoline price stood at 1,830.19 won per liter, up 10.84 won from the previous day. Diesel averaged 1,826.25 won per liter, an increase of 10.45 won.

The rise in maximum prices is already being reflected in consumer fuel prices. For the four days from March 23 to March 26, the nationwide average gasoline price held steady at 1,819 won, but on March 27—the first day the second maximum price took effect—it surpassed 1,830 won. Diesel prices, which remained around 1,815–1,816 won during the same period, also exceeded 1,826 won on March 27.

It is only a matter of time before consumers see retail gasoline and diesel prices exceed 2,000 won per liter. Since the maximum price is a wholesale cap for gas stations, actual retail prices include additional components such as station margins and operating costs. Considering that gas station inventories typically last two to three days, some predict that consumer prices could reach the 2,000 won range as early as this coming weekend. Notably, some gas stations may adjust the pace at which they deplete their inventories in anticipation of higher prices, potentially accelerating the timing at which higher prices are felt by consumers.

Yang Kiuk, Director General of the Industrial Resource Security Office at the Ministry of Trade, Industry and Energy, stated, "Most gas stations carry inventory for about five days to two weeks," and added, "Immediate price hikes are not appropriate; typically, price changes are gradually reflected after two to three days."

To cushion the shock from rising international oil prices, the government has increased the scope of fuel tax reductions. From March 27, the fuel tax cuts for gasoline and diesel were expanded from 7% and 10% per liter, respectively, to 15% and 25%. Consequently, including value-added tax, the fuel tax on gasoline will decrease by 65 won from 763 won to 698 won, and diesel by 87 won from 523 won to 436 won. The end date for the fuel tax cut has also been extended from April to May. While these expanded tax cuts help ease the burden somewhat, they are insufficient to prevent consumer prices from rising.

The bigger concern is the "next increase." The petroleum maximum price is reset based on the two-week average of the Singapore Mean of Platts (MOPS) international product price. Currently, international oil prices remain highly volatile due to prolonged instability in the Middle East. In particular, if concerns over supply disruptions—such as the potential blockade of the Strait of Hormuz—persist, upward pressure on prices could intensify. This means the current second adjustment is not the end of the price hikes, but merely an intermediate step.

Some point out that as long as international oil prices continue to rise, neither fuel tax cuts nor price ceilings can fundamentally relieve the burden on consumers. An official from the Ministry of Trade, Industry and Energy said, "Fuel tax cuts and maximum price policies can slow the pace of price increases, but they cannot change the overall direction if international oil prices keep rising," adding, "For now, we have no choice but to respond based on the premise that fuel prices will continue to rise."

Following the issuance of a warning for the crude oil resource security crisis, starting at midnight on the 25th, a mandatory five-day weekday driving restriction (by day of week) for passenger cars, excluding electric and hydrogen vehicles, will be enforced in the public sector. The photo shows a sign informing about the five-day driving restriction for vehicles installed at the entrance of the Government Complex Seoul in Jongno-gu, Seoul, on the 24th. March 24, 2026. Photo by Cho Yongjun

In parallel, the government is strengthening crackdowns on market disruption activities and is also reviewing ways to compensate refiners for losses incurred by the implementation of the price ceiling system. A government official stated, "We will take a zero-tolerance approach to market disruption, focusing particularly on cases where prices are raised sharply despite remaining inventories purchased at lower prices," adding, "We are also discussing measures to compensate refiners for losses stemming from the implementation of the maximum price system."

Amid these developments, the government is also intensifying mandatory five-day driving restrictions for public sector vehicles to address the ongoing energy supply crisis. Notably, the outdoor parking lots at the Government Complex Sejong—previously a regulatory blind spot—will now be included in inspections.

Minister of Climate, Energy, and Environment Kim Seonghwan instructed, "Public institutions must take the lead and strictly adhere to the weekday vehicle restriction system," further directing, "Inspections of temporary parking lots around the Government Complex Sejong should also be strengthened." The Ministry of Climate, Energy, and Environment plans to distinguish between public sector and private vehicles by cross-checking the registration information of vehicles parked in outdoor and temporary parking lots.

If it is confirmed that a public institution vehicle subject to the five-day driving restriction was parked on a restricted day, the head of the institution will be notified to prompt internal inspection and follow-up measures. Plans are also underway to install signboards informing drivers about the five-day driving restriction at the entrances to each temporary parking lot.

While indoor parking lots at the complex have a system that automatically blocks entry for vehicles violating the weekday restriction by recognizing license plate numbers, outdoor and temporary parking lots have lacked such controls and have effectively operated without safeguards.

As a result, vehicles unable to enter indoor parking lots have shifted to outdoor lots, undermining the effectiveness of the system. On March 26, at the temporary parking lot near Building 9 of the Government Complex Sejong, a number of vehicles with license plate numbers ending in 4 and 9—which are restricted from driving on Thursdays—were observed parked. Even accounting for the presence of private vehicles, this highlights the absence of a dedicated management system for public institution vehicles.

Because outdoor parking lots are shared with private vehicles, it is difficult to immediately determine whether a vehicle belongs to a public institution based solely on photography or on-site checks. Accordingly, the government plans to cooperate with the complex's management office to check vehicle registration information and will gradually raise the level of oversight by introducing random inspections. Minister Kim emphasized, "The Ministry should set an example," and added, "Public institutions must act responsibly, reflecting the expectations of both the media and the public."

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