226 highway gas stations cut prices by 100 won per liter during chuseok holiday

A gas station at Mannam-ui Gwangjang rest area in Seocho-gu, Seoul. [Yonhap]
A gas station at Mannam-ui Gwangjang rest area in Seocho-gu, Seoul. [Yonhap]

Gas prices at stations across South Korea extended their losing streak to 19 consecutive weeks, edging down from the previous week under the combined effect of the government's oil price cap and a fuel discount at highway stations during the chuseok holiday.

For the fourth week of September (Sept. 20-24), the national average retail price of gasoline fell 0.6 won per liter from the previous week to 1,858.0 won, according to Opinet, the oil price information system run by the Korea National Oil Corporation.

Seoul, which recorded the highest prices in the country, saw its average slip 0.2 won to 1,904.2 won per liter, while Daegu, the cheapest market, fell 0.6 won to 1,830.1 won.

Among brands, GS Caltex stations posted the highest average at 1,861.5 won per liter, while budget discount stations came in lowest at 1,845.9 won.

The national average diesel price fell 0.5 won from the previous week to 1,843.4 won per liter.

Global oil prices declined this week after a Saudi Arabian east-west pipeline damaged by Houthi rebel attacks resumed operation and the United States and Iran held discussions on a phased agreement. Dubai crude, the benchmark for South Korea's oil imports, fell $11.90 per barrel from the previous week to $113.00.

International gasoline prices dropped $3.20 to $139.90 per barrel, while international automotive diesel fell $15.90 to $177.40.

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

The government has maintained its oil price cap to limit the impact of global price swings on domestic consumers.

On Sept. 18, the government set the 10th round of oil price caps at the same levels as the ninth round — 1,784 won per liter for gasoline, 1,773 won for diesel and 1,380 won for kerosene.

The government also cut fuel prices by 100 won per liter at 226 highway gas stations on fiscal expressways managed by the Korea Expressway Corporation during the chuseok holiday period (Sept. 24-27), compared with Sept. 17 levels, contributing in part to the downward trend. Domestic gas prices could fall further next week.


yuni@heraldcorp.com