Gasoline Prices at Gas Stations Expected to Drop to 1,900 Won Range This Week... "Likely to Fall by 50 Won Weekly"

▲ Gas station

Domestic fuel prices, which have been hovering in the 2,000 won range, are set to gradually decline following the government's first reduction of the maximum price for petroleum products, implemented about 100 days after its introduction.

Industry experts project that the average price of gasoline will fall to the mid-to-high 1,900 won range this week, as the drop in international oil prices coincides with the government's lowering of the price ceiling.

However, considering existing stockpiles of gasoline purchased at higher prices, it is expected to take two to three weeks for consumers to fully feel the impact of the recent decline in international oil prices.

The price of Dubai crude in the Singapore spot market, which South Korea primarily imports, plummeted by 34.3% over the past month, falling from 98.0 dollars per barrel on May 26 to 64.4 dollars on June 25.

This is even lower than the 70 dollars per barrel recorded just before the outbreak of the war between the U.S.-Israel and Iran.

In contrast, the retail price of gasoline at domestic gas stations showed little change, moving from 2,011.1 won in the fourth week of May to 2,007.8 won in the fourth week of June.

Nevertheless, analysts suggest that the decline in domestic fuel prices, as felt by consumers, will become visible starting this week due to the government's reduction of the price ceiling.

The average gasoline price at gas stations nationwide has remained in the 2,000 won range for over two months since April 18.

The government lowered the 7th maximum petroleum price by 150 won per liter effective from midnight yesterday (June 27), setting the ceiling at 1,784 won for gasoline, 1,773 won for diesel, and 1,380 won for kerosene.

This marks the first downward adjustment in 106 days since the maximum price system for petroleum was introduced.

However, the speed and extent of the price cuts may vary depending on the inventory situation of individual gas stations.

This is because it is difficult for stations to lower prices immediately if they hold stockpiles of gasoline purchased at higher costs previously.

Therefore, analysts predict that domestic fuel prices will continue a gradual downward stabilization trend over the next two to three weeks.

While international oil prices have fallen below pre-war levels, experts also note that there are limitations to how much domestic fuel prices can drop, considering the rise in international petroleum product prices and exchange rates.

According to Opinet, the average retail price of gasoline at domestic gas stations in the fourth week of February, just before the war between the U.S.-Israel and Iran, was 1,691.3 won.

The international gasoline price in the fourth week of June was 100.6 dollars, which is an increase of approximately 27.7% compared to the fourth week of February (78.8 dollars) before the war.

(Photo: Yonhap News)

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