"Honey, Let's Add Gas Later"...Possibility of Gas Station Prices Falling After Four Consecutive Months of Increase

Possibility of Price Drop Next Week
Due to Exchange Rate and International Oil Prices

The weekly average prices of gasoline and diesel at domestic gas stations have risen together for 16 consecutive weeks. However, factors driving the increase in fuel prices, such as the exchange rate and international oil prices, show signs of easing, raising the possibility that fuel prices may drop as early as next week.

According to the Korea National Oil Corporation's oil price information system OPINET on the 1st, the average selling price of gasoline at gas stations nationwide in the fifth week of January (26th to 30th) recorded 1,733.1 KRW per liter, up 6.9 KRW from the previous week. The average selling price of diesel was 1,596.7 KRW per liter, up 11.3 KRW.

A view of a gas station in Seoul. Photo by Kang Jin-hyung

Seoul, where gasoline prices at gas stations are the highest, recorded 1,805.9 KRW per liter, up 5.3 KRW from the previous week, while Daegu, with the lowest price, rose 6.1 KRW to 1,707.7 KRW. The cheapest brand was Altteul Gas Station, with an average price of 1,706.1 KRW per liter. This is the first time since the first week of November 2023 that the average gasoline price at Altteul Gas Station has exceeded 1,700 KRW.

This week, international oil prices fell due to foreign media reports raising concerns about reduced energy demand at data centers following the announcement of China's DeepSeek artificial intelligence (AI) model and an increase in U.S. weekly crude oil inventories.

Dubai crude oil, which serves as the price benchmark for imported crude oil, also recorded 81.4 dollars per barrel, down 1.1 dollars from the previous week. Changes in international oil prices are typically reflected in domestic gas station prices after about 2 to 3 weeks.

An official from the Korea Petroleum Association said, "Recently, the exchange rate and international oil prices have declined, so there is a possibility that oil prices will fall starting next week," adding, "The downward trend is expected to continue for the next two weeks, with the decline in diesel prices being greater than that of gasoline."