Gasoline at 1,856 Won... Prices Expected to Remain Stable for Now

Industry: "Price Cap Unlikely to End This Year"

Domestic gasoline prices, which surged after the war in the Middle East, have recently stabilized in the 1,850-won-per-liter range. Although international oil prices have risen above $100 per barrel again, the government’s price cap on petroleum products has curbed increases in domestic prices. Analysts expect prices to remain around current levels for the time being, as it will take time for international oil prices and crude oil supplies to recover to prewar levels.

Oil prices are displayed at the Mannameui Gwangjang gas station in Seocho-gu, Seoul, on the 16th, when the 11th round of maximum fuel prices was announced. Yonhap News Agency

According to Opinet, the Korea National Oil Corporation’s oil price information system, the average retail price of gasoline at gas stations nationwide stood at 1,856.24 won per liter as of 9 a.m. on October 19. That was about 9.7% higher than the 1,692.58 won recorded on February 27, just before the war in the Middle East broke out. Gasoline prices, which topped 2,000 won per liter in May and June, have recently stabilized in the 1,850-won range, influenced by the government’s price cap and fluctuations in international oil prices.

The monthly average gasoline price rose from 1,836.4 won per liter in March to 1,986 won in April, then peaked at 2,011.2 won in May. It subsequently fell to 1,882.4 won in July and 1,858.5 won in September. In October, prices fluctuated less, averaging 1,857.5 won in the first week and 1,856.6 won in the second week.

Domestic gasoline prices are expected to remain stable for the time being, as the government has frozen the price cap on petroleum products. On October 16, the Ministry of Trade, Industry and Energy kept the 11th-round price caps at 1,784 won per liter for gasoline, 1,773 won for diesel, and 1,380 won for kerosene. The caps will apply for four weeks starting October 17.

International oil prices, by contrast, have risen again. Dubai crude, the benchmark for crude oil imported into South Korea, reached $106 per barrel on October 16. After falling to $66.29 on July 1, it rose to $99.91 on September 1 and exceeded $100 in October. Analysts say the price cap has played a major role in keeping domestic gasoline prices from fluctuating significantly despite the rise in international oil prices.

Industry officials believe it will be difficult to end the price cap within the year. “To end the system, international oil prices and crude oil supplies would have to recover to prewar levels in the Middle East, but that is unlikely to happen within the year,” an industry official said. “As long as the price cap remains in place, domestic gasoline prices are likely to stay around current levels for the time being.”

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