Gas Prices Fall for 10th Consecutive Week, but Decline Slows Amid Escalating Middle East Tensions

Gas prices at gas stations across South Korea continued their downward trend for the 10th consecutive week, but the pace of the decline for both gasoline and diesel slowed significantly as the Middle East conflict reignited and Red Sea shipping routes faced renewed threats.

According to Opinet, the oil price information system operated by the Korea National Oil Corporation, the average retail price of gasoline nationwide for the fourth week of July (July 19–23) stood at 1,872.4 won per liter, down 5.1 won from the previous week.

While the weekly decline in gasoline prices is maintaining a downward trend—following drops of 59.1 won week-on-week in the second week of July and 15.5 won in the third week—the magnitude of the drop has narrowed sharply due to the reignited conflict in the Middle East.

By region, Seoul recorded the highest average price at 1,911.3 won per liter, down 2.5 won from the previous week, while Ulsan recorded the lowest at 1,845.4 won, down 5.2 won.

Among refinery brands, GS Caltex gas stations posted the highest average price at 1,876.7 won per liter.

Alttel (discount) gas stations offered the lowest average price at 1,864.8 won per liter.

The average retail price of diesel dropped 5.6 won from the previous week to 1,856.9 won per liter.

The decline for diesel also slowed compared to the second week of July (down 62.3 won) and the third week (down 17.7 won).

International oil prices rose this week as tensions mounted in the Middle East, fueled by hints of large-scale military action by the United States against Iran and Yemen's Iran-backed Houthi rebels, alongside an attack on a Saudi Arabian oil tanker in the Red Sea.

Dubai crude, the benchmark for imported crude oil, rose 21.4 dollars from the previous week to 97.2 dollars per barrel.

International gasoline prices increased by 18.7 dollars to 124.7 dollars per barrel, while international automotive diesel climbed 24 dollars to 167.6 dollars per barrel.

Fluctuations in international oil prices are typically reflected in domestic gas station prices with a two- to three-week lag.

The government is focusing on minimizing the impact of rising international oil prices on domestic gas station prices by freezing maximum petroleum price caps.

Starting at midnight today, the government set the 8th maximum petroleum price cap, effective for four weeks, at the same level as the 7th cap.

The caps are set at 1,784 won per liter for gasoline, 1,773 won per liter for diesel, and 1,380 won per liter for kerosene.
※ Please note: This article was translated by AI and may contain errors.