Gasoline Prices Enter 1800 Won Range... One Month After Maximum Fuel Tax Cut

Gasoline Price at 1,897.3 Won per Liter... About 4 Months Since March This Year
Effect of Expanded Fuel Tax Reduction... Price Dropped 247.6 Won in One Month
Government Expands Gas Station Inspections... Strengthens Crackdown on 'Fake Oil'

Domestic Gasoline Prices Decline for Fourth Consecutive Week
(Seoul=Yonhap News) Reporter Ryu Hyorim = Domestic gasoline and diesel prices have fallen for four consecutive weeks. According to the Korea National Oil Corporation's oil price information service Opinet on the 30th, the average retail price of gasoline at gas stations nationwide during the third week of July (24?28) was 1,937.7 KRW per liter, down 75.4 KRW from the previous week. The photo shows a gas station in Seoul on the 31st. 2022.7.31
ryousanta@yna.co.kr
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[Asia Economy Sejong=Reporter Lee Jun-hyung] Gasoline prices have entered the 1,800 won range for the first time in about four months since March. This comes one month after the government expanded the fuel tax reduction to the legal maximum of 37%.

The Ministry of Trade, Industry and Energy announced on the 1st that as of the 31st of last month, the gasoline price recorded 1,897.3 won per liter (ℓ). It is the first time in about four months since March 9th this year that gasoline prices have entered the 1,800 won range. During the same period, diesel prices recorded 1,982.6 won per liter.

The reason gasoline prices entered the 1,800 won range is that the government raised the fuel tax reduction to an all-time high. Previously, the government expanded the fuel tax reduction from 30% to 37% starting from the 1st of last month. Accordingly, gasoline prices fell by 247.6 won from 2,144.9 won per liter on June 30th, just before the expansion of the fuel tax reduction, to 1,897.3 won on the 31st of last month. During the same period, diesel prices dropped by 185.1 won from 2,167.7 won to 1,982.6 won per liter. A government official explained, "The gasoline price corresponding to the additional fuel tax reduction is 57 won per liter," adding, "One month after the implementation of the (fuel tax expansion), gasoline prices have fallen more than four times the additional reduction amount."

Domestic petroleum product price trends. [Photo by Ministry of Trade, Industry and Energy]

Altteul Gas Stations Lead the Decline

Looking only at Altteul gas stations, the price drop is even greater. According to the Ministry of Trade, Industry and Energy, self-operated Altteul gas stations lowered the gasoline selling price by 306.1 won in the past month, from 2,137.1 won per liter on June 30th to 1,831 won on the 31st of last month. During the same period, EX-Altteul gas stations under the jurisdiction of Korea Expressway Corporation reduced gasoline prices by 278.1 won from 2,119.6 won to 1,841.5 won per liter.

The average price at regular gas stations is also on a downward trend. The average gasoline price at regular gas stations fell by 245.9 won in the past month, from 2,146.3 won to 1,900.4 won per liter. The supply price from refiners to gas stations is also showing a decline due to the government's additional fuel tax reduction measures. The average gasoline supply price from refiners was 1,690.7 won per liter as of the third week of last month, down 289.7 won compared to the fifth week of June this year (1,980.4 won).

However, diesel prices are expected to remain higher than gasoline prices for the time being. This is because diesel imports in Europe, which heavily depends on Russian energy, are restricted by international sanctions against Russia, keeping international diesel prices at a high level. According to the Ministry of Trade, Industry and Energy, as of last week, international gasoline prices were recorded at $112.9 per barrel, while diesel prices were $139.4 per barrel. The supply prices from refiners as of the third week of last month were 1,690.7 won per liter for gasoline and 1,823.5 won for diesel.

Additional Inspections of Gas Station Market

Meanwhile, the Ministry of Trade, Industry and Energy plans to inspect gas stations nationwide to stabilize petroleum product prices. The ministry has already been operating the 'Refiner and Gas Station Market Inspection Team' since the 1st of last month in line with the expanded fuel tax reduction measures. The inspection team conducted 10 on-site inspections at 25 gas stations nationwide until last month. Furthermore, the inspection team plans to carry out additional on-site inspections at gas stations nationwide until international oil prices stabilize.

Crackdowns on counterfeit oil have also been strengthened. The Korea Petroleum Quality Management Service has been conducting special inspections on illegal activities such as the distribution of counterfeit oil from the 1st to the 31st of last month. In the past month, the Petroleum Quality Management Service inspected 2,742 gas stations and caught five counterfeit oil distribution businesses.

A Ministry of Trade, Industry and Energy official said, "We will continue daily monitoring of domestic prices and hold inspection meetings with the refining and gas station industries every week," adding, "We plan to enhance the effectiveness of the fuel tax reduction by checking market conditions and encouraging price reductions."