Oil Prices Keep Rising, Surpassing 1,700 Won... Expected to Increase Further Next Week

National Gasoline Price Average 1710 Won per Liter
Rising International Oil Prices Push Further Increase
Ministry of Industry Plans Measures to Prevent Additional Rise

Recently, as the rate of fuel tax reduction was scaled back, the price of gasoline at gas stations in Seoul rose by 47 won per liter over two weeks. In particular, there are concerns that Seoul's gasoline prices have increased more than the reduced fuel tax cut, and with international oil prices on the rise, prices may go up further.

According to Korea National Oil Corporation's Opinet, as of the 12th, the nationwide average gasoline price recorded 1,710 won per liter, up 39 won compared to two weeks ago before the fuel tax reduction was scaled back.

The above photo is not directly related to the article. Photo by Jo Yongjun jun21@

The increase in Seoul is significant. The average gasoline price in Seoul on that day was 1,780 won, which is higher than the fuel tax restoration amount (41 won). Generally, gas stations use existing inventory first, so it takes about two weeks for the partial normalization of the fuel tax to be reflected. Therefore, it is considered unusual that gasoline prices have exceeded the increase in less than two weeks.

Domestic gasoline prices are likely to rise further in line with the increase in international oil prices. Industry experts predict that next week, gasoline prices in Seoul could exceed the 1,800 won mark.

In fact, international oil prices have been on the rise since early to mid-last month. Dubai crude, which accounts for 72% of domestic imported crude oil, recorded $79.79 per barrel on the 7th of last month but steadily increased to $85.55 per barrel by the 11th of this month. West Texas Intermediate (WTI) also rose from $75.53 to $82.62 per barrel during the same period.

The Ministry of Trade, Industry and Energy plans to take maximum measures to prevent further increases in fuel prices. The supply price discount policy for cost-conscious gas stations that refrain from raising prices will continue next week without a set deadline. They will also continue to monitor fuel price trends through petroleum market inspection meetings.

The ministry is also considering actively proposing to the Ministry of Economy and Finance a plan to expand the fuel tax reduction again from September to alleviate the burden on the public.