Gas Prices at South Korean Gas Stations Fall for 18th Consecutive Week Amid Price Ceiling

▲ Fueling up

Despite rising global oil prices, fuel prices at gas stations across the country edged down compared to the previous week due to the government's ceiling price system, marking a downward trend for the 18th consecutive week.

According to Opinet, the oil price information system operated by the Korea National Oil Corporation, on September 19, the average selling price of gasoline at gas stations nationwide for the third week of September (September 13 – 17) stood at 1,858.6 won per liter, down 0.5 won from the previous week.

Seoul recorded the highest prices at 1,904.4 won per liter, down 0.9 won from the previous week, while Daegu recorded the lowest prices at 1,830.7 won, down 1.4 won.

By brand, GS Caltex gas stations recorded the highest average price at 1,861.6 won, while budget (Alttel) gas stations recorded the lowest at 1,849.1 won.

The average selling price of diesel fell 0.1 won from the previous week to 1,843.9 won per liter.

Global oil prices rose this week due to factors including the suspension of operations at Saudi Arabia's East-West pipeline, the implementation of U.S. sanctions against Iran, and reports of delayed discussions between Gulf nations and Iran regarding the Strait of Hormuz.

Dubai crude, the benchmark for imported crude oil, rose 10.1 dollars from the previous week to 126.5 dollars per barrel.

International gasoline prices rose 9.6 dollars to 143.2 dollars, and international automotive diesel rose 20.9 dollars to 195.6 dollars.

Changes in international oil prices are typically reflected in domestic gas station prices with a lag of about two to three weeks.

However, the government is maintaining the maximum petroleum price cap to minimize the impact of international oil price fluctuations on domestic prices.

The previous day, the government set the 10th maximum petroleum price at the same level as the 9th maximum price.

The caps are set at 1,784 won per liter for gasoline, 1,773 won for diesel, and 1,380 won for kerosene.

Separately, as the government has decided to lower fuel prices by 100 won per liter compared to September 17 at 226 highway gas stations managed by the Korea Expressway Corporation during the Chuseok holiday period (September 24 – 27), the decline in domestic gas station prices is likely to expand next week.

※