Gasoline averages 1,869.1 won per liter, diesel 1,852.8 won

Global oil prices weaken, with 2-3 week lag before domestic reflection

A price board stands at a gas station in Seoul. [Yonhap]
A price board stands at a gas station in Seoul. [Yonhap]

Fuel prices at domestic gas stations continued their downward trend, as global oil prices — which feed into domestic pump prices with a lag — also declined.

According to Opinet, the Korea National Oil Corp.'s oil price information system, the national average retail price of gasoline during the fifth week of July (July 26–30) fell 3.3 won per liter from the previous week to 1,869.1 won.

Seoul, which had the highest prices, averaged 1,910.1 won per liter, down 1.2 won from the previous week, while Ulsan, the cheapest region, came in at 1,843.8 won, down 1.6 won. By brand, GS Caltex stations posted the highest average at 1,873.3 won per liter, while budget "altteuljuyuso" discount stations were the lowest at 1,861.3 won.

The national average retail price of diesel fell 4.1 won from the previous week to 1,852.8 won per liter.

Global oil prices fell this week amid a temporary halt in hostilities between the United States and Iran and continued discussions on forming a Saudi Arabia-led multinational coalition to ensure freedom of navigation in the Red Sea.

Dubai crude, the benchmark for South Korea's oil imports, dropped $7.20 per barrel from the previous week to $80.70. International gasoline prices fell $2.90 to $115.90 per barrel, while international automotive diesel slipped $2.00 to $158.00. Changes in global oil prices are typically reflected in domestic pump prices with a lag of about two to three weeks.

Meanwhile, the government has maintained a ceiling on oil prices to limit the impact of global price swings on domestic consumers. On Saturday, July 25, the government set the eighth round of oil price caps at the same levels as the seventh — 1,784 won per liter for gasoline, 1,773 won for diesel and 1,380 won for kerosene.


eyre@heraldcorp.com