Fuel and Engine Oil Costs Surge... Internal Combustion Vehicle Owners Face Soaring Maintenance Burden

Operating Costs for Personal Transportation Equipment Up 16.4%
Electric Vehicle Registrations Surpass 1 Million

With the cost of engine oil changes soaring alongside fuel prices, the financial burden of maintaining internal combustion engine vehicles is increasing for owners. As both fuel and vehicle maintenance costs rise simultaneously, the cumulative number of registered electric vehicles continues to exceed 1 million, reflecting sustained demand growth.

A gas station in Seoul. Photo by The Asia Business Daily

According to the National Statistical Portal (KOSIS) on May 14, the 'Operating Costs for Private Transportation Equipment' in April rose by 16.3% compared to the same month last year. This cost refers to expenses incurred to maintain and operate privately owned means of transportation, such as cars and motorcycles.

This rate of increase is the highest since July 2022, when the outbreak of the Russia-Ukraine war pushed the figure up by 26.0%.

In particular, the surge in fuel costs stood out. The 'Fuel and Lubricant Costs for Private Transportation Equipment' jumped 22.7% year-on-year, marking the largest increase since July 2022 (33.0%). By item, diesel prices soared by 30.8%, and gasoline rose by 21.1%. In contrast, LPG prices for vehicles declined by 3.5%, affected by the time lag in reflecting international contract prices.

Vehicle maintenance and management costs also increased. The 'Consumables and Maintenance/Repair Costs for Private Transportation Equipment' rose by 4.5%, the highest rate since November 2023 (4.6%).

Car repair costs rose by 4.8%, and car wash fees increased by 4.3%. The cost of engine oil changes—a representative consumable for internal combustion engine vehicles—jumped by 11.6%, the biggest increase in 16 years and 10 months since June 2009 (11.7%). This is attributed to rising international oil prices and increased labor costs.

While the burden of maintaining internal combustion engine vehicles grows, demand for electric vehicles is rapidly increasing. The government attributes the surge in demand for electric vehicles to a combination of rising international oil prices, the launch of new electric vehicle models, industry-wide discount competition, and supportive policies.

According to the Ministry of Climate, Energy and Environment, as of April 15, the cumulative number of registered electric vehicles in South Korea surpassed 1 million. The number of newly registered electric vehicles this year also exceeded 100,000 as of April 14. Considering that last year this milestone was reached in the second week of July, it is about three months earlier this year.

The proportion of electric vehicles among all new car registrations has also increased. As of the end of March this year, electric vehicles accounted for 20.1% of new registrations, up significantly by 13.0% from last year.

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