More than 96% of gas stations across South Korea have maintained stable gasoline prices, according to the country’s fuel price cap system. The Ministry of Trade, Industry and Energy reported that as of Wednesday, 96.1% of the 10,646 gas stations in the country had not changed their gasoline prices.
Last week, the government decided to freeze fuel price caps for the third consecutive time. This freeze keeps the maximum prices of regular gasoline, diesel, and kerosene steady at 1,934 won (US$1.30), 1,923 won, and 1,530 won per liter, respectively.
The Ministry highlighted that the price ceiling system’s active implementation has contributed to stabilizing domestic fuel prices. Since the U.S.-Israeli conflict with Iran in late February, gasoline prices have only increased by 19%, and diesel prices by 26% in South Korea.
In comparison, the United States saw a 44% increase in both gasoline and diesel prices during the same period. Similarly, gasoline prices in Britain, Germany, and France rose between 19% and 22%, while diesel prices increased between 28% and 37%. Japan, on the other hand, experienced smaller increases of 7% for gasoline and 9% for diesel due to its subsidy system.
Consumption of gasoline and diesel decreased by 3% and 8%, respectively, after the government implemented the price cap system on March 13. Yang Ghi-wuk, the deputy minister for trade, industry, and resources security, noted that consumers are feeling pressure from higher prices.
“Some may argue that fuel consumption would have decreased further if international oil prices were fully reflected in domestic fuel prices,” Yang said. He also mentioned the need to consider the negative impact of weakened consumption when determining an appropriate price level.
Regarding the potential lifting of the price ceiling, Yang stated that international oil prices should drop below $100 per barrel, along with a stabilization of the situation in the Strait of Hormuz. As of Wednesday, the Brent crude price was $105.63 per barrel, and the West Texas Intermediate price stood at $101.04 per barrel.
