Weekly drop of 9.6 won per liter
Gasoline prices fall for the first time in 11 weeks
Fuel tax cut to be expanded from next month
[Asia Economy Reporter Moon Chaeseok] As international oil prices fell, domestic gasoline prices at gas stations also slightly decreased this week. When the government's expanded fuel tax reduction measures take effect next month, domestic gasoline prices, which recorded the highest level in 10 years since 2012, are expected to stabilize somewhat.
According to the Korea National Oil Corporation's oil price information service Opinet on the 9th, the average gasoline retail price at gas stations nationwide in the first week of April (3rd to 7th) was 1,990.5 KRW per liter, down 9.6 KRW from the previous week. Following a 1.9 KRW decrease last week, this marks two consecutive weeks of decline. Domestic gasoline prices had risen for 10 consecutive weeks from the third week of January until the end of last month, following international oil prices, but then shifted to a downward trend due to factors such as the U.S.-led release of strategic reserves.
Domestic gasoline prices peaked at 2,004 KRW per liter on the 16th of last month, the highest since October 2012, and have recently been falling by about 1 to 2 KRW daily. As of the afternoon of the previous day, the nationwide average gasoline price dropped to 1,984.9 KRW. A representative from the Korea Petroleum Association said, "Since international gasoline prices have been declining for three consecutive weeks, domestic gasoline prices are expected to continue the downward trend for the time being."
The average gasoline price this week in Seoul, the highest-priced region, was 2,049.7 KRW per liter, down 18.9 KRW from the previous week, while Daegu, the lowest-priced region, recorded 1,969.5 KRW, down 16.0 KRW from the previous week. By brand, GS Caltex gas stations had the highest average price at 1,999.2 KRW per liter, and budget gas stations were the cheapest at 1,964.7 KRW.
Diesel prices at gas stations also turned to a downward trend after 11 weeks. The nationwide average diesel retail price this week was 1,911.8 KRW per liter, down 8.0 KRW from the previous week. As of the afternoon of the previous day, the nationwide average diesel price was 1,907.9 KRW per liter. A representative from the Petroleum Association predicted, "Domestic diesel prices are expected to show a downward or slightly weak trend for the time being."
International oil prices, a leading indicator of domestic fuel prices, declined this week due to the International Energy Agency (IEA)'s announcement of an additional strategic reserve release and the extension of the COVID-19 lockdown in Shanghai, China. Dubai crude, the benchmark for domestic imported crude oil, fell by 5.3 dollars from the previous week to 102.1 dollars per barrel, and the international average gasoline price dropped by 1.6 dollars to 121.1 dollars per barrel. However, international diesel prices slightly increased due to supply shortages centered in Europe. This week, the average international automotive diesel price was 144.3 dollars per barrel, up 1.7 dollars from the previous week.
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