Gasoline Prices at Gas Stations Fall for 11 Consecutive Weeks... "Expected to Rise Starting Next Week"

Impact of Exchange Rates and International Oil Prices

The weekly average prices of gasoline and diesel at domestic gas stations have fallen for 11 consecutive weeks. Due to the influence of exchange rates and international oil prices, the trend is expected to reverse and rise starting next week.

A citizen is refueling at a gas station in Seodaemun-gu, Seoul. Photo by Jo Yongjun jun21@

According to the Korea National Oil Corporation's oil price information system Opinet on the 12th, the average selling price of gasoline at gas stations nationwide in the second week of October (6th to 10th) recorded 1,585.4 KRW per liter, down 2.2 KRW from the previous week. Seoul, where prices were highest, dropped 2.1 KRW to 1,653.3 KRW, while Daegu, where prices were lowest, rose 1.2 KRW to 1,547.6 KRW. The cheapest brand was Altteul Gas Station, with an average price of 1,557.4 KRW per liter. The average selling price of diesel was 1,416.6 KRW per liter, down 3.8 KRW.

This week, international oil prices rose due to geopolitical risks related to the Middle East and concerns over oil supply disruptions caused by hurricane damage in the United States. Dubai crude, the benchmark for imported crude oil prices, rose 3.6 dollars per barrel from the previous week to 77.9 dollars. International gasoline prices increased by 4.5 dollars to 82.6 dollars, and international automotive diesel rose by 4.8 dollars to 91.4 dollars, respectively.

Changes in international oil prices are usually reflected in domestic gas station prices after a lag of about 2 to 3 weeks. The Korea Petroleum Association forecasted, "Due to the influence of exchange rates and international oil prices, gas prices at gas stations are expected to rise starting next week," adding, "The increase in diesel prices will be greater than that of gasoline."