SEOUL — Domestic gasoline and diesel prices in South Korea have extended their decline for the third consecutive week, providing some relief to consumers amid fluctuating global energy markets. According to data released on Saturday by Opinet, the Korea National Oil Corporation’s oil price information service, the downward trend is expected to persist into the coming week.

Weekly Price Breakdown
For the fourth week of December (Dec. 21–25), the average retail price of gasoline at pumps nationwide stood at 1,735.3 won per liter, marking a decrease of 6.5 won from the previous week. Diesel prices saw an even sharper decline, falling by 11.0 won to reach an average of 1,641.7 won per liter.

Regionally, Seoul remained the most expensive area in the country. The average gasoline price in the capital fell by 9.0 won to 1,796.1 won per liter, which is 60.8 won higher than the national average. Conversely, Daegu recorded the lowest prices in the country, with gasoline averaging 1,706.5 won per liter, down 6.6 won from a week earlier.

Brand and Supplier Performance
Among gas station brands, SK Energy maintained the highest average price at 1,743.1 won per liter, while thrift stations (Altteul Joo-yoo-so) offered the most competitive rates at 1,713.7 won.

On the supply side, GS Caltex, the highest-priced refiner, saw its prices drop by 12.3 won to 1,681.5 won per liter. HD Hyundai Oilbank recorded the lowest supply price at 1,647.7 won, following a 10.5 won decrease.

Global Market Influence
The domestic decline comes despite a slight uptick in international crude prices this week. Dubai crude, South Korea’s benchmark, rose by $1.7 to $61.9 per barrel. This increase was fueled by supply disruption concerns following Ukraine’s continued strikes on Russian oil facilities and the U.S. seizure of Venezuelan tankers.

However, international product prices showed mixed results. International gasoline prices dropped by $1.5 to $73.3, while international automotive diesel remained flat at $80.1. Because changes in international oil prices typically take two to three weeks to reflect at local pumps, the previous weeks' global downward trends are currently driving the domestic market.

Future Outlook
Market analysts suggest that the cooling of international product prices will outweigh the recent rise in exchange rates. "Despite the upward pressure from the strengthening dollar, the overall downward trend in international oil products remains the dominant factor," said an official from the Korea Petroleum Association. "We anticipate that domestic fuel prices will continue their descent through next week."

As the year draws to a close, the continued drop in energy costs is expected to slightly ease the inflationary burden on South Korean households and the logistics industry.

[Copyright (c) Global Economic Times. All Rights Reserved.]