Global Oil Prices Drop, But When Will Gas Station Prices Follow?

[Anchor]

This is the price of West Texas Intermediate (WTI) crude oil futures traded in New York. While it stood at $62 per barrel in early February, it surged following the outbreak of war between the United States and Iran. On April 7, when President Trump made remarks about potentially destroying Iran's infrastructure, prices nearly doubled. Fortunately, with the ceasefire agreement, oil prices have since fallen to $80. However, it is expected to take some time for domestic consumers to fully feel the impact of this decline in oil prices.

Reporter Park Jaehyeon has the story.

[Reporter]

Following the war between the U.S. and Iran, airline fuel surcharges, which immediately reflect oil price trends, soared to record highs.

[Yoo Young-jun / Outbound Traveler: I bought a plane ticket for 600,000 won, but it was canceled (in March). I ended up paying an additional 400,000 won to buy it again because I had already booked a resort.]

International oil prices have gradually stabilized since last month, when ceasefire negotiations became visible.

As a result, fuel surcharges, which were lowered once this month, will be reduced by another 20% for tickets issued starting next month.

For Korean Air, this means a reduction of 15,100 won for short-haul one-way flights and up to 107,500 won for the longest routes.

However, fuel prices felt by consumers remain high, with both gasoline and diesel prices at gas stations nationwide exceeding 2,000 won per liter.

It takes at least two to three weeks for international oil prices to be reflected in consumer prices due to the processes of transportation, refining, and distribution.

There are also concerns that gas stations may be slower to lower prices than they were to raise them, citing the need to clear out inventory purchased at higher costs.

[Kim Hae-beom / Yangcheon-gu, Seoul: Gas prices have risen so much that I even considered switching to a smaller car; the impact is severe. They say it takes a long time to actually feel the difference (even when international oil prices drop).]

With time needed to restore damaged oil facilities and countries rushing to secure strategic reserves, the prevailing outlook is that oil prices will not fall much further for the time being.

[Kim Tae-hwan / Head of Oil Policy Research at Korea Energy Economics Institute: (From May to September), there is high demand, and with the added demand to replenish (refinery) inventories and the demand for strategic reserves by various countries, even if the (strait) were to open right now, it is a period when demand remains very solid.]

The government plans to announce the 7th maximum petroleum price on the 18th, after comprehensively reviewing the contents of the U.S.-Iran ceasefire memorandum of understanding, the situation regarding passage through the Strait of Hormuz, and international oil prices.

Reported by Park Jaehyeon | Video by Park Hyun-cheol | Video Editing by Kim Yoon-sung | Graphics by Kim Han-gil and Park Tae-young
※ Please note: This article was translated by AI and may contain errors.