International oil prices have reached their highest level in seven years, leading to a significant rise in domestic fuel prices as well. In response, the government plans to reduce the fuel tax for the first time in three years. The most likely timing is the 26th, when the Emergency Economic Central Countermeasures Headquarters meeting will be held. A gas station in downtown Seoul on the 21st. Photo by Moon Honam munonam@
[Asia Economy Reporter Hwang Yoon-joo] As the government has officially announced its plan to reduce the fuel tax, domestic gasoline prices have risen by more than 45 KRW per liter just this week. In particular, the nationwide average price at gas stations exceeded 1,700 KRW, marking the highest level since 2014.
According to the Korea National Oil Corporation's oil price information service OPINET on the 23rd, the nationwide average gasoline retail price at gas stations for the third week of October (October 18-22) was 1,732.4 KRW per liter, up 45.2 KRW from the previous week.
This week's gasoline price is the highest since the second week of November 2014 (1,735.6 KRW). The nationwide average gasoline price on the previous day was 1,748 KRW, rising 4.7 KRW in one day, continuing the upward trend.
Domestic gasoline prices have been rising for five consecutive weeks. The weekly increase per liter has been growing each week: 0.8 KRW → 1.9 KRW → 8.7 KRW → 28.3 KRW → 45.2 KRW.
In particular, this week's increase of 45.2 KRW per liter is the largest since the fourth week of 2009 (61.9 KRW), when prices surged due to the end of the fuel tax reduction and rising international gasoline prices.
By region, Seoul, the area with the highest prices, saw gasoline prices rise 36.0 KRW from the previous week to 1,808.6 KRW. This is the first time in seven years since November 2014 that Seoul's gasoline price has exceeded the 1,800 KRW mark.
Busan, the region with the lowest prices, also saw gasoline prices rise 39.3 KRW from the previous week to 1,708.2 KRW, pushing all regions nationwide above the 1,700 KRW level.
By brand, GS Caltex gas stations had the highest gasoline price at 1,740.9 KRW per liter, while discount gas stations were the cheapest at 1,700.3 KRW per liter.
The nationwide average diesel price at gas stations also rose 46.8 KRW from the previous week to 1,530.4 KRW per liter.
International oil prices continued their upward trend. The average price of Dubai crude oil, the benchmark for oil imported into Korea, rose 1.0 USD from the previous week to 83.2 USD per barrel.
International gasoline prices rose 2.6 USD from the previous week to 98.0 USD per barrel, and international automotive diesel prices increased 0.9 USD to 97.7 USD per barrel.
The Korea National Oil Corporation analyzed, "International oil prices are on the rise due to factors such as a decrease in U.S. crude oil inventories, continued improvement in the employment market, and Morgan Stanley's upward revision of next year's oil price forecast."
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