As International Oil Prices Soar... Nationwide Gasoline Prices Rise for 2 Consecutive Weeks

National Average 1,651 Won... Increase Margin Expands to 18.9 Won
Russia's Threat of Attack on Ukraine and Middle East Issues Pose Risks

The scene of a gas station in downtown Seoul on the 23rd. / Photo by Moon Honam munonam@

[Asia Economy Reporter Moon Chaeseok] Gasoline prices at gas stations nationwide have risen for two consecutive weeks despite the government's price reduction measures. This is largely attributed to the sharp increase in international oil prices.

According to Opinet, the oil price information site of the Korea National Oil Corporation, the nationwide gasoline retail price for the last week of this month recorded 1,651.0 KRW per liter, up 18.9 KRW from the previous week. This marks a two-week consecutive increase, with the rise expanding from 10.1 KRW to 18.9 KRW.

Gasoline prices had been declining around November 12 last year, when the government began lowering the oil tax. After reaching a seven-year high of 1,807.0 KRW per liter in the second week of November, the highest since September 2014, the government’s tax cut led to a nine-week consecutive decline. However, with the sharp rise in international oil prices, prices started to increase again last week, ten weeks after the tax cut.

According to the corporation, this week’s international oil prices have reached their highest level in seven years since October 2014, due to heightened geopolitical risks such as the possibility of Russia invading Ukraine and drone attacks on oil facilities in the United Arab Emirates (UAE). The International Energy Agency (IEA) also forecasted that this year’s oil demand will return to pre-COVID-19 pandemic levels, which contributed to the price increase. As a result, the average price of Dubai crude, the benchmark for imported crude oil in Korea, rose by 0.7 dollars to 86.5 dollars per barrel. International gasoline prices also increased by 1.8 dollars to 99.6 dollars per barrel.

Seoul, where gasoline prices are the highest nationwide, saw an increase of 19.9 KRW to 1,723.7 KRW per liter compared to the previous week, while Daegu, the region with the lowest prices, rose by 22.4 KRW to 1,624.1 KRW per liter. Nationwide diesel prices at gas stations also rose by 19.6 KRW to 1,469.6 KRW per liter. By brand, GS Caltex gasoline was the most expensive at 1,660.1 KRW per liter, while budget gas stations offered the lowest price at 1,613.8 KRW per liter.