Gasoline prices at gas stations across the country continued to rise for the sixth straight week in line with the surge in international oil prices. Although the government lowered the fuel tax by 20% in November last year, it is evaluated that the effect has already disappeared.
According to the Korea National Oil Corporation’s oil price information site Offinet on the 27th, the price of gasoline sold at gas stations in the fourth week of this month was 1739.8 won per liter, up 21.4 won from the previous week. Gasoline prices across the country have fallen for the ninth week in a row due to the fuel tax cut that has been in effect since mid-November last year. However, from the third week of January, it began to rise once more, and from last week it rose to 1,700 won. Starting from the third week of January, the weekly increases were 15.2 won, 24.2 won, 26.6 won, and 21.4 won.
By region, gasoline prices in Seoul and Jeju exceeded 1,800 won per liter. As of the 24th, Jeju rose to 1825.6 won per liter and Seoul to 1810.5 won. Busan recorded the lowest price of gasoline at 1709.5 won per liter, up 21.9 won from the previous week, 30.3 won lower than the national average. By brand, GS Caltex gasoline was the most expensive at 1748.3 won per liter, and thrifty gas station was the cheapest at 1707.8 won per liter. The price of diesel at gas stations nationwide also rose by 24.3 won from the previous week to 1564.5 won per liter.
International oil prices continued to rise as concerns grew that Russia’s invasion of Ukraine might disrupt oil supply. The price of Dubai oil, which is the standard for domestic imported crude oil, recorded $95.0 per barrel, up $2.9 from the previous week. The average international gasoline price rose 2.1 dollars to 110.6 dollars per barrel. According to the U.S. Energy Information Administration (EIA), the Organization for Economic Cooperation and Development (OECD) crude oil inventories stood at 2.68 billion barrels as of last month, the lowest level since 2014.
Industry experts predict that the international oil price will exceed $100 per barrel due to the Ukraine crisis. There are also concerns that domestic gasoline prices might exceed 2,000 won if the war in Ukraine prolongs.
The government is considering extending the fuel tax cut, which ends in April, to alleviate the impact of rising oil prices.
Reporter Lee Ji-hoon lizi@hankyung.com
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