SEOUL – For the second consecutive week, South Korea has enjoyed a decline in domestic fuel prices, with both gasoline and diesel seeing reductions. According to data released by the Korea National Oil Corporation's Opinet system on February 22nd, the average price of gasoline at gas stations across the country during the third week of February (16th-20th) was 1,726.9 won per liter, a decrease of 4 won from the previous week.
The capital city of Seoul, typically the region with the highest fuel costs, saw a decrease of 6.4 won, averaging 1,787.5 won per liter. Meanwhile, Daegu, the city with the lowest prices, experienced a 3.4 won drop, settling at 1,699.5 won per liter. This marks a return to the 1,600 won range for Daegu for the first time in five weeks.
A breakdown by brand reveals that SK Energy stations had the highest average price at 1,735.7 won per liter, while budget-friendly Alttel stations offered the lowest at 1,701.6 won per liter. Diesel prices also fell, with an average decrease of 3.4 won, bringing the national average to 1,593.1 won per liter.
These price decreases come despite a rise in international oil prices this week. Factors contributing to this global increase include a Ukrainian drone attack on a Russian oil pipeline and reduced oil production in the United States due to a severe cold wave. The Dubai crude oil price, a key indicator for imported oil in South Korea, rose by 0.2 dollars to 78.4 dollars. International gasoline prices also climbed by 1.2 dollars to 86.7 dollars, while diesel prices saw a slight decrease of 0.2 dollars, settling at 92.5 dollars.
However, experts caution that the downward trend in domestic fuel prices may be short-lived. The fluctuations in international oil prices typically take 2-3 weeks to fully impact domestic prices. Given the recent surge in global oil prices, there is a growing concern that prices at the pump in South Korea could begin to rise again in the coming weeks.
A representative from the Korea Petroleum Association suggested that the decline in fuel prices may slow down or even reverse next week due to the recent increases in international gasoline and diesel prices. They further indicated that gasoline prices are likely to experience greater upward pressure than diesel prices.
This potential reversal in fuel prices could pose a challenge for consumers in South Korea, who have already been grappling with economic uncertainties. The government and industry stakeholders will be closely monitoring the situation to assess the potential impact and consider appropriate measures to mitigate any adverse effects on the public.
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