The average gasoline price in South Korea’s gas stations decreased again on Sunday, falling below the 2,000-won mark for the second consecutive day. As per industry data from the Korea National Oil Corp. (KNOC), the average gasoline price stood at 1,991.1 won per liter, down 5 won from the previous day. Diesel prices also saw a decline to 1,982.3 won per litre.
The drop in energy prices follows the government’s decision to lower the price ceiling on fuel prices to mirror the recent global crude price decline. Maximum prices for regular gasoline, diesel, and kerosene supplied to gas stations by local oil refiners have been reduced by 150 won to 1,784 won, 1,773 won, and 1,380 won per litre, respectively, effective from Saturday. Global oil prices, including Dubai Crude, have experienced a significant decrease, with Dubai Crude falling by 34.3 percent over the past month.
Market analysts anticipate that consumers will start feeling the impact of the price drop in about two to three weeks, considering that gas stations are still depleting inventories purchased at higher prices. An industry official mentioned that prices are likely to gradually decrease by approximately 50 won per week over the next few weeks. However, reaching pre-war fuel price levels may be challenging due to the weakened won and the escalation in global petroleum product prices.
Before the conflict between the United States and Iran, the average gasoline price at local gas stations was 1,691.3 won per litre in the fourth week of February, according to KNOC data.
