Oil prices rise for 8 weeks in a row… Expected to decline as fuel tax cuts widen

A gas station in Seoul with additional fuel tax cuts reflected. photo = Yonhap News

Gasoline and diesel prices have been on the rise for eight weeks in a row, but the rise has been dampened by the government’s additional fuel tax cuts.

According to Korea National Oil Corporation’s oil price information service Opinet on the 2nd, as of 5:00 pm on the 1st, the national average gasoline price was 2128.84 won per liter and diesel price was 21578.70 won per liter, respectively, down 16.06 won and 9.96 won from the previous day.

Since May, the oil tax cut rate has been expanded from 20% to 30%, and from the previous day, it has been expanded to 37%.

However, domestic gasoline and diesel prices are expected to decline next week as there is a time lag until the fuel tax cut is reflected in the actual gas station sales price.

International crude oil prices recorded an upward trend due to a decrease in US commercial crude oil inventories and an agreement between the G7 countries to push for a ceiling on the price of Russian oil. Dubai crude, the basis for imported crude oil, stood at $112.7 per barrel, up $4.8 from last week.

The average international gasoline price was $147.1 per barrel, down $0.50 from last week. International diesel prices fell by 8.9 dollars to 172.2 dollars, respectively.

Shin Yong-hyun, reporter at Hankyung.com [e-mail]