Gas station fuel prices fall for 4 consecutive weeks

A gas station in Seoul on June 2. [Yonhap]
A gas station in Seoul on June 2. [Yonhap]

By Jung Yoon-hee, The Herald Business

Weekly average prices for gasoline and diesel at domestic gas stations edged down for a fourth consecutive week, as falling global oil prices reflected growing expectations that a ceasefire agreement between the United States and Iran is imminent.

According to Opinet, the oil price information system operated by the Korea National Oil Corp., the national average retail price of gasoline during the second week of June (June 7–11) fell 0.5 won per liter from the previous week to 2,009.9 won.

By region, Seoul posted the highest price at 2,051.5 won per liter, up 0.7 won from the previous week, while Daegu recorded the lowest at 1,990.6 won, down 1.4 won.

By brand, SK Energy stations averaged the highest price at 2,013.8 won per liter, while budget "altteuljuyuso" discount stations posted the lowest at 1,995.9 won.

The national average retail price of diesel fell 0.3 won from the previous week to 2,004.8 won per liter.

International oil prices rose early in the week as fighting between the United States and Iran continued, but gave back those gains later in the week after President Donald Trump indicated the two countries were close to a ceasefire agreement.

Dubai crude, the benchmark for South Korea's oil imports, fell $4.50 from the previous week to $89.70 per barrel. International gasoline prices rose $1.30 to $117.50 per barrel, while international automotive diesel fell $7.90 to $140.10 per barrel.

Global oil prices have been falling as Trump and Iran's foreign minister both signaled that a ceasefire deal is near.

On Friday local time, Brent crude futures for August delivery settled at $87.33 per barrel on the London ICE Futures Exchange, down $3.37 from the previous session. West Texas Intermediate futures for July delivery fell 3.23 percent on the New York Mercantile Exchange to close at $84.88 per barrel.

Changes in international oil prices are typically reflected in domestic gas station prices with a lag of two to three weeks.

The government has again frozen the sixth round of maximum oil prices, which took effect May 22. The caps remain at 1,934 won per liter for gasoline, 1,923 won for diesel and 1,530 won for kerosene — the same levels as the second through fifth rounds.


yuni@heraldcorp.com