The average price of gasoline surpassed the price of diesel for the first time in eight months since June last year.
According to the Korea National Oil Corporation's oil price information site, Opinet, as of 9 a.m. on the 23rd, the average selling price of gasoline at gas stations nationwide was 1,579.28 KRW per liter, which was 0.91 KRW higher than the diesel price (1,578.37 KRW).
Typically, gasoline, which is taxed more heavily, is more expensive than diesel, but due to supply disruptions caused by the Russia-Ukraine war, the prices have reversed. In March last year, when the U.S. announced sanctions banning Russian crude oil and natural gas, diesel demand surged mainly in Europe. As the supply-demand balance was disrupted, diesel prices began to rise.
On the 23rd, the average nationwide gasoline selling price surpassed the diesel price again for the first time in eight months. The photo shows a citizen refueling at a gas station in Seoul city, with gasoline and diesel prices displayed in the background. [Image source=Yonhap News]
The diesel price (1,947.59 KRW) first surpassed the gasoline price (1,946.11 KRW) on May 11 last year. Although gasoline prices temporarily overtook diesel prices again, from June 13 onward, diesel prices remained higher than gasoline prices for over eight months. This was the first time in about 14 years since June 2008. Diesel prices rose sharply compared to gasoline, at one point exceeding a difference of over 230 KRW.
However, starting this year, the fuel tax reduction rate on gasoline was reduced from 37% to 25%, while the diesel fuel tax reduction rate remained at 37%, resulting in gasoline prices eventually surpassing diesel prices. With reduced demand for heating power in Europe, the international diesel price continues to decline, and domestic diesel prices are expected to stabilize accordingly.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
