Domestic Fuel Prices Fall Despite Rising Global Oil Prices

Despite rising international gasoline prices, domestic gas station fuel prices fell for the 20th consecutive week. According to Opinet, the Korea National Oil Corporation's price information system, the nationwide average retail price of gasoline for the fifth week of September (September 27 to October 1) stood at 1,857.6 won per liter, down 0.4 won from a week earlier. The average retail price of diesel over the same period was 1,843.3 won per liter, down 0.1 won from the previous week.

By region, Seoul had the highest average gasoline price at 1,904.0 won per liter, while Daegu had the lowest at 1,829.8 won. By brand, GS Caltex gas stations had the highest price at 1,861.0 won per liter, while discount gas stations had the lowest.

In international markets, concerns over supply disruptions eased due to the recovery of Middle Eastern crude oil exports and the restart of the Saudi East-West pipeline, with Dubai crude, the benchmark for imported oil, trading at $107.6 per barrel, down $5.5. International prices of refined products were mixed. Global gasoline prices rose $3.3 to $143.3 per barrel, while diesel for vehicles fell $1.8 to $174.9 per barrel.

Fluctuations in global oil prices are typically reflected in domestic gas station prices with a lag of two to three weeks. The government continues to enforce its oil price ceiling system to minimize the impact of global oil price fluctuations on domestic prices. The 10th price ceiling designated on the 18th of last month remained at the same level as the 9th: 1,784 won per liter for gasoline, 1,773 won for diesel, and 1,380 won for kerosene.