Gasoline Prices: Korea at 2,000 Won, Japan at 1,500 Won... "Korea Not Excessively Suppressing"

On April 3, at a gas station in Yongsan-gu, Seoul, where international oil prices are soaring due to U.S. President Donald Trump's tough remarks, a price notice for gasoline and diesel is displayed. 2026.04.03 Photo by Dongju Yoon

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As international oil prices are soaring due to the prolonged war in the Middle East, petroleum product prices in Korea have remained relatively high compared to Japan and the United States. In particular, while the price of gasoline in Korea has surpassed 2,000 won per liter, Japan has maintained much lower prices in the 1,500 won range, thanks to government subsidies. This highlights a clear gap in prices due to policy differences.

According to the Ministry of Trade, Industry and Energy on April 21, domestic gasoline prices stood at 2,003.17 won per liter and diesel at 1,996.76 won per liter as of that day. This represents an increase of 18.4 percent and 25.0 percent, respectively, compared to February 27, before the war began.

In contrast, as of April 19, gasoline prices in Japan were recorded at 1,527 won per liter and diesel at 1,432 won. These figures are 23.8 percent and 28.3 percent lower than those in Korea, respectively. The rates of increase compared to February 27, prior to the war, were only 7.28 percent and 9.4 percent, respectively. This is attributed to the Japanese government's efforts to keep prices in check through fuel tax subsidies.

Yang Kiuk, policy chief at the Ministry of Trade, Industry and Energy, explained at the daily briefing of the Middle East War Response Headquarters, "Although Korea has implemented a price ceiling system, our rate of increase is more than twice that of Japan," adding, "As far as I know, Japan continues to provide significant subsidies."

The situation is somewhat different in the United States. As of April 20, the price of gasoline was 1,586 won per liter, which is 20.8 percent lower than in Korea, but diesel stood at 2,170 won, which is actually 8.7 percent higher. This is seen as a result of differences in domestic logistics-driven fuel demand and refining margins in the United States.

This comparison is also interpreted as a rebuttal to recent criticism that the government is "artificially suppressing prices through tax injections." Unlike Japan, which keeps prices low with large-scale subsidies, Korea has focused on managing the rate of increase by implementing price ceilings and adjusting fuel taxes.

Yang emphasized, "Since there are significant differences in price levels and rates of increase between countries, whether Korea is excessively suppressing prices because of the price ceiling system should be judged in comparison with cases in other countries."

Meanwhile, as concerns have grown about disruptions in the supply of ethylene gas, a key material for the shipbuilding industry, HD Hyundai has started producing and supplying it internally in response.

Ethylene gas, which is essential for the steel plate cutting process at the initial stage of shipbuilding, is produced by cracking naphtha at high temperatures. Recently, concerns have emerged about possible supply disruptions due to instability in supply chains originating from the Middle East.

In response, since mid-March, the Ministry of Trade, Industry and Energy has taken measures to ensure the supply of necessary volumes for process continuity through cooperation with the shipbuilding and chemical industries, while the industry itself has also worked to improve usage efficiency.

HD Hyundai has established a plan to produce and procure ethylene gas independently through its chemical affiliate, HD Hyundai Chemical. The company will load 2,000 tons of ethylene produced at the Daesan Petrochemical Complex in South Chungcheong Province onto a carrier vessel and transport it to the vicinity of its Ulsan shipyard.

The shipment is scheduled to arrive in early May and will be sequentially supplied to shipyards within the HD Hyundai group and its partner companies. Notably, about 200 tons of the total volume will also be supplied to small and medium-sized shipbuilders.

The government plans to alleviate short-term supply instability through this measure while also strengthening a response system based on industry cooperation. Yang added, "We will continue to expand public-private cooperation to prevent production disruptions even amid supply chain instability."

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