Seoul Gasoline Nears 1900 Won as Prices Climb on Second Day of Price Cap

Two days after the implementation of a price cap system for petroleum products, domestic fuel prices have risen again. Gasoline prices in the Seoul metropolitan area, in particular, have approached the 1900 won per liter threshold. According to the Opinet oil price information system, as of 7 PM on the 28th, the average gasoline price at gas stations nationwide was 1857.2 won per liter, up 18.4 won from the previous day. Diesel prices also rose by 16.5 won to 1851.1 won. In Seoul, the average gasoline price reached 1898.7 won, with diesel at 1878.2 won.

The second iteration of the government's oil price cap, which began on March 27th, sets the upper limit for regular gasoline at 1934 won, for automotive and marine diesel at 1923 won, and for indoor kerosene at 1530 won. These caps represent an increase of 210 won for each product compared to the first price cap period.

A combination of factors, including rising international oil prices, geopolitical instability in the Middle East, and currency exchange rate pressures, continues to exert upward pressure on domestic petroleum product prices. During the previous price cap period, retail gasoline prices at stations were approximately 100 won higher than the supply prices from refiners. The record high for the weekly average gasoline price at gas stations nationwide was 2137.7 won in the fifth week of June 2022.