As the Chuseok holiday approaches, international oil prices have fallen for three consecutive days but remain above $100 per barrel, continuing to exert pressure on prices. While domestic fuel prices have not surged immediately due to government price controls and delays in reflecting international prices, prolonged high oil prices could eventually drive up transportation and production costs, impacting domestic inflation.
According to the Korea National Oil Corporation's oil price information system, Opinet, West Texas Intermediate (WTI) crude for October delivery traded at $100.30 per barrel on the New York Mercantile Exchange on September 18, down $1.61 (1.58%) from the previous trading day. Meanwhile, Brent crude for November delivery fell by $0.95 (0.91%) to $103.87 on the London ICE Futures Exchange.
Despite the recent decline, oil prices remain high. Disruptions in the Strait of Hormuz, a key oil transport route, could lead to renewed increases in international oil prices if tensions in the Middle East escalate or if supply issues worsen.
Typically, increases in international oil prices are reflected in domestic fuel prices with a certain delay. With more people traveling for the Chuseok holiday, sustained high oil prices could increase household transportation costs. Additionally, rising transportation costs may affect the distribution expenses of essential goods, including agricultural and seafood products.
Prices for essential items vary. According to a price survey conducted by the Korea Agro-Fisheries & Food Trade Corporation (aT) on September 19, the average cost for a Chuseok feast for a family of four is 196,630 won, which is 1.5% lower than the week before last year's Chuseok.
However, prices for livestock products have increased compared to last year. The price of 900 grams of beef brisket is 37,053 won, up 3.2%, while 400 grams of chuck is priced at 21,976 won, a 0.4% increase. The price of 300 grams of pork shoulder has risen to 5,028 won, up 3.4%. A dozen eggs cost 2,370 won, which is 11.3% higher than last year. Among vegetables, prices for radishes and zucchini have also increased, with a radish costing 2,134 won (up 8.0%) and a zucchini priced at 2,144 won (up 18.6%).
* This article has been translated by AI.
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