Gas Prices Drop for Fifth Consecutive Week, Average Gasoline Price Below 2000 Won

Domestic gasoline and diesel prices have fallen for the fifth consecutive week. The decline follows weak international oil prices amid expectations for the implementation of a peace agreement between the United States and Iran, contributing to stability in domestic fuel prices.

According to the Korea National Oil Corporation's Opinet on June 20, the average selling price of gasoline at nationwide gas stations in the third week of June decreased by 0.7 won per liter to 2009.2 won. Diesel prices also fell by 0.7 won to 2004.1 won.

Regionally, gasoline prices in Seoul were the highest at 2051.2 won, while Daegu reported the lowest at 1989.6 won. Among brands, SK Energy stations had the highest average price at 2012.8 won, while discount stations offered the lowest at 1995.7 won.

International oil prices have also seen a decline. The price of Dubai crude, a benchmark for imported crude oil, dropped by $13.6 to $74.8 per barrel. Prices for international gasoline and diesel fell significantly to $103.6 and $116.5, respectively.

However, geopolitical instability in the Middle East remains a variable. While the implementation of the U.S.-Iran peace agreement has contributed to lower oil prices, ongoing Israeli airstrikes in Lebanon have limited the extent of the decline. Typically, it takes about two to three weeks for fluctuations in international oil prices to be reflected in domestic prices, suggesting that fuel prices in South Korea are likely to remain stable for the time being.

On June 18, the government extended the maximum price regulation for gasoline at 1934 won, diesel at 1923 won, and kerosene at 1530 won. Future decisions on further extensions will depend on the normalization of shipping through the Strait of Hormuz and the trends in international oil prices.