To Feel the Impact of Fuel Tax Cuts... Head to Altteul Gas Stations?

The photo is unrelated to the article.

[Asia Economy Reporter Oh Hyung-gil] During the week when the government lowered the fuel tax to the legal maximum limit, Altteul Gas Stations reduced the gasoline price by an average of about 60 KRW per liter, showing the most definite effect of the expanded fuel tax reduction.

Most other gas stations only lowered prices by around 20 KRW.

According to the weekly domestic petroleum product price trends from the Korea National Oil Corporation on the 7th, the gasoline retail price at gas stations in the first week of this month recorded 1,940.7 KRW per liter, down 27.5 KRW from the previous week.

The diesel retail price fell by only 0.8 KRW to 1,906.9 KRW per liter compared to the previous week.

The government expanded the fuel tax reduction rate from 20% to 30% starting from the 1st of this month.

Although the fuel tax was reduced by 20% for about six months from November last year to April this year, due to the rise in domestic fuel prices influenced by the Russia-Ukraine war and other factors, the government decided to increase the reduction rate and extend the period until July.

Accordingly, it was forecasted that gasoline prices would drop by 83 KRW per liter and diesel prices by 58 KRW per liter.

Fuel Tax Reduction Expansion and Gas Station Brand-wise Selling Prices (Source: Korea National Oil Corporation)

However, fuel prices have not yet fallen as much as the government's forecast.

On the other hand, Altteul Gas Stations saw the average gasoline selling price drop significantly by 58.7 KRW from 1,942.1 KRW last week to 1,883.4 KRW this week.

This is nearly twice the average reduction of 27.5 KRW.

At petroleum company-branded gas stations, the price reductions were limited to 22.9 KRW at SK Energy, 26.8 KRW at GS Caltex, 26.7 KRW at Hyundai Oilbank, and 19.0 KRW at S-Oil.

The diesel selling price at Altteul Gas Stations also fell sharply by about 16 KRW, from 1,888.5 KRW to 1,872.4 KRW.

Altteul Gas Stations maintain lower selling prices because the Korea National Oil Corporation and NongHyup purchase petroleum products cheaply from domestic refiners through bidding and supply them at prices lower than general gas stations.