11th Round of Maximum Petroleum Prices 'Frozen'... Gasoline at 1,784 Won, Diesel at 1,773 Won

Kerosene also at 1,380 won... Effective for four weeks from October 17
Middle East tensions persist; international oil prices remain around $100 per barrel
Government: "Comprehensively considered household price pressures and petroleum supply conditions"

Yonhap News Agency

The government will freeze the maximum prices of petroleum products, including gasoline and diesel, at their current levels. The measure takes into account the burden on household budgets and domestic petroleum supply conditions, as international oil prices remain high at around $100 per barrel amid ongoing tensions in the Middle East.

The Ministry of Trade, Industry and Energy said on October 16 that it would freeze the 11th round of maximum petroleum prices at the same levels as the 10th round. The new prices will apply for four weeks starting at midnight on October 17. Accordingly, the maximum prices per liter will remain at 1,784 won for gasoline, 1,773 won for diesel and 1,380 won for kerosene.

The government froze the prices after taking into account recent developments in the Middle East and trends in international oil prices. Tensions in the region remain high, with Iran continuing to attack vessels passing through the Strait of Hormuz and Yemen's Houthi rebels attacking airports, oil facilities and other targets in Saudi Arabia.

International oil prices have also remained high. Brent crude rose from $105.8 per barrel in the third week of September to $103.2 in the first week of October and $102.0 in the second week, before climbing to $105.9 on October 15. Dubai crude fell from $124.9 to $107.0 over the same period, but remained above $100. West Texas Intermediate (WTI) stood at $98.0 per barrel on October 15.

International prices for petroleum products have also remained high. The international price of gasoline fell from $143 per barrel in the third week of September to $133 on October 15, while the international price of diesel declined from $193 to $170 over the same period.

The government said the burden of consumer prices remains substantial. Although the consumer price inflation rate slowed to the 2.9% range last month, petroleum product prices rose 14.8% year over year.

Domestic sales of petroleum products have been declining as the maximum-price system remains in place over an extended period. Last month, gasoline sales at gas stations increased 3.0% year over year, while diesel sales fell 9.0%. Combined sales of gasoline and diesel declined 3.7%.

The Ministry of Trade, Industry and Energy also said that the increase in gasoline sales last month was largely due to a temporary concentration of demand during the Chuseok holiday. During this year's Chuseok holiday period, the average number of daily travelers rose 55.1% from last year, while highway traffic increased 12.6%. In particular, gasoline sales at EX budget gas stations on highways rose 91% during Chuseok week. Of the approximately 36,000 kiloliters of additional gasoline consumed last month, about 29,000 kiloliters, or roughly 80%, were consumed during Chuseok week.

Gasoline sales declined again in October. Sales in the first two weeks of October fell 5.5% from the same period last year. Cumulative sales from the second week of March, when the maximum-price system was introduced, through the second week of October declined 1.7% for gasoline and 7.6% for diesel, respectively, year over year.

As domestic consumption continues to fall, the refining industry is asking the government to ease restrictions on petroleum product exports. The government plans to consult with the industry and seek ways to manage export volumes, provided domestic supply is not affected.

The government believes there are no current problems with domestic supplies of crude oil itself. The government and industry have secured crude oil imports for October and November equivalent to more than 100% of the average volume for the same period last year.

A Ministry of Trade, Industry and Energy official said, "We decided to freeze the maximum prices after taking into comprehensive consideration the recent burden on household budgets and petroleum supply conditions. As tensions in the Middle East continue, we will seek to stabilize people's livelihoods through the maximum-price system for petroleum while operating the system in response to domestic and international conditions."

This content was produced with the assistance of AI translation services.