Gasoline, diesel fall for 7th consecutive week

An SK Group gas station in Seoul. [Yonhap]
An SK Group gas station in Seoul. [Yonhap]

Gasoline and diesel prices at South Korean gas stations fell sharply this week, driven by declining global oil prices and the government's seventh round of petroleum price caps. Both fuels extended their losing streak to seven consecutive weeks, dropping more than 50 won per liter to settle in the mid-1,900-won range.

According to Opinet, the Korea National Oil Corp.'s oil price information system, the national average retail price of gasoline during the first week of July (June 28–July 2) fell 55.7 won per liter from the previous week to 1,952.1 won.

By region, Seoul was the most expensive, with prices down 73.0 won from the prior week to 1,976.6 won per liter, while Daejeon was the cheapest at 1,916.4 won, a drop of 77.4 won.

By brand, S-Oil stations posted the highest average price at 1,954.1 won per liter, while SK Energy stations were the lowest at 1,950.5 won.

The national average retail price of diesel fell 58.9 won per liter from the previous week to 1,942.4 won.

Gasoline and diesel prices have fallen in tandem for seven straight weeks since the third week of May, as global oil prices stabilized following the signing of a memorandum of understanding between the United States and Iran to end hostilities.

The pace of decline accelerated significantly from the fourth week of June, when the government's petroleum price cap reductions took effect.

Global oil prices fell further this week as working-level negotiators from the US and Iran, along with mediating countries, gathered in Doha, Qatar, to discuss a framework for ending the conflict, raising expectations for a normalization of crude supply.

However, the lack of clear progress in the negotiations limited the extent of the decline. Dubai crude, the benchmark for South Korea's oil imports, stood at $63.3 per barrel as of July 2, down $1.1 from a week earlier.

Changes in global oil prices typically take two to three weeks to be reflected in domestic pump prices, and drivers heading into the summer vacation season can expect some relief at the pump.

The government launched its seventh petroleum price cap on June 27, cutting the maximum price for each fuel type by 150 won per liter. The new ceilings are set at 1,784 won for gasoline, 1,773 won for diesel and 1,380 won for kerosene.


forest@heraldcorp.com