Nationwide Gasoline and Diesel Prices Fall for 11th Straight Week... Government Freezes Price Cap for 8th Time

According to the Korea National Oil Corporation's oil price information system, Opinet, the average retail prices of gasoline and diesel at gas stations nationwide in the fifth week of July (July 26-30) fell by 3.3 won and 4.1 won, respectively, from the previous week, marking an 11th consecutive week of decline. This week, the average sales price for gasoline at surveyed gas stations nationwide was 1,869.1 won per liter, while diesel was 1,852.8 won. By region, Seoul was the highest at 1,910.1 won, while Ulsan was the lowest at 1,843.8 won. By brand, GS Caltex was the most expensive at 1,873.3 won, while discount gas stations were the cheapest at 1,861.3 won.

International oil prices, which served as the immediate backdrop for the drop in domestic prices, fell due to factors such as a temporary halt to attacks between the U.S. and Iran and discussions on the creation of a multinational coalition led by Saudi Arabia to guarantee freedom of navigation in the Red Sea. Dubai crude fell by $7.20 to $80.70 per barrel, international gasoline fell by $2.90 to $115.90, and international diesel fell by $2.00 to $158.00.

The government operates the oil price cap system to minimize the impact of international oil price fluctuations on domestic prices. The 8th oil price cap designated on the 25th of last month was frozen at 1,784 won for gasoline, 1,773 won for diesel, and 1,380 won for kerosene, identical to the 7th. International oil price fluctuations are typically reflected in domestic gas station prices with a time lag of two to three weeks.