Gasoline prices in South Korea continue to decline economy

Average gasoline prices at gas stations in South Korea fell again, remaining below the level of 2,000 won (about $1.3) per liter for the second day in a row, in light of the decline in global oil prices and government measures to reduce the ceiling on fuel prices.

Yonhap Agency quoted the Korean National Oil Corporation as saying that the average price of gasoline at 9 a.m. Sunday (local time) reached 1,991.1 won per liter, a decrease of 5 won compared to the previous day, after it fell to less than 2,000 won for the first time in about two months.

The data also showed that the average price of diesel decreased to 1,982.3 won per liter.

The decline in energy prices comes after the government’s decision to reduce the maximum fuel prices to reflect the recent decline in global crude oil prices.

Under the decision, the maximum prices for regular gasoline, diesel and kerosene supplied by local oil refineries to gas stations were reduced by 150 won, to 1,784 won, 1,773 won, and 1,380 won per liter, respectively, as of Saturday.

This coincided with a decline in global oil prices, while market observers expect that the impact of this decline will take between two and three weeks for the impact of this decline to be transmitted to consumers, given that gas stations are still selling part of the inventory they purchased at higher prices.

A sector official said: “Given the difference in stock levels between gas stations, prices are expected to gradually decrease by about 50 won per week over the next two or three weeks.”

Although prices are expected to continue to decline, the official indicated that it may be difficult for local fuel prices to return to levels before the US-Iran war, due to the weak won and high prices of global petroleum products.

The average price of gasoline at local gas stations reached 1,691.3 won per liter during the fourth week of February, before the outbreak of war between America and Iran, according to data from the Korean National Petroleum Corporation.