Diesel Price Surpasses 2,000 Won for First Time in 4 Years, Burdening Consumers and Refiners

The national average diesel price has surpassed 2,000 won per liter for the first time in approximately four years, while gasoline prices remain in the 2,000-won range, indicating persistently high oil costs. Rising international oil prices due to unstable geopolitical situations in the Middle East are placing a greater financial burden not only on consumers' wallets but also on the operational management of the refining industry.

According to the Oil Price Information System Opinet, as of 4 p.m. on the 24th, the first day of the 4th oil price cap implementation, the national average diesel price recorded 2,000.54 won per liter. This marks the highest level in about three years and nine months, since the impact of the Russia-Ukraine war in 2022. The national average gasoline price entered the 2,000-won range on the 17th and was recorded at 2,006.47 won, reaching its highest level since 2022. In Seoul, the average gasoline price stood at 2,044 won, and the diesel price at 2,030.9 won.

The government has decided to freeze the 4th oil price cap, following the 3rd, and is implementing a 'strategic oil reserve swap' to stabilize the supply chain. The strategic oil reserve swap is a system where refiners lend their reserve oil and receive the same type of crude oil back later.

International oil prices have surged recently due to heightened tensions in the Strait of Hormuz, and the refining industry is struggling with crude oil procurement issues and increased cost burdens. Consumer groups point out that the time lag for international oil price fluctuations to be reflected domestically is typically two to three weeks and are voicing their suffering due to the high oil price burden caused by the continuous daily price hikes recently.