As the Middle East conflict continues, the impact of rising international oil prices has caused domestic refinery prices to increase by about 100 won per liter over the past week. However, consumer gas prices are moving in the opposite direction. Following the government's decision to freeze the maximum oil prices and reduce highway gas prices by an additional 100 won during the Chuseok holiday, consumers will see some relief from high fuel costs for the time being.
According to industry sources on September 20, the average refinery price for gasoline from the three major refiners (SK Energy, GS Caltex, and HD Hyundai Oilbank) rose to approximately 2,278 won per liter last week, an increase of over 100 won from the previous week. Diesel prices also rose to an average of 2,466 won per liter. The surge in refinery prices is attributed to a spike in international oil prices, with Dubai crude closing at $115.46 per barrel on September 18, a nearly 69% increase from $68.23 per barrel on February 24, before the outbreak of the Middle East conflict.
In contrast, the average selling prices at domestic gas stations have not yet reversed their downward trend. According to the Korea National Oil Corporation's oil price information system, Opinet, the average selling price for gasoline at gas stations nationwide in the third week of September was 1,858.62 won per liter, while diesel was 1,843.86 won, reflecting a decrease of 0.5 won for gasoline and 0.1 won for diesel compared to the previous week.
The government has also frozen the 10th maximum oil price system, which took effect on September 19. This means that even if refinery prices rise significantly due to international oil price increases, the actual prices supplied to gas stations cannot exceed the maximum price. As the gap between refinery prices and actual supply prices widens, the burden on refiners increases.
The government plans to compensate refiners for losses incurred due to the maximum price system based on production costs. However, the first round of financial support for loss compensation has not yet been disbursed. The Ministry of Trade, Industry and Energy has stated that it plans to provide financial support for loss compensation within the year.
During the Chuseok holiday, gas prices at highway stations will see an additional reduction. The government announced that from September 24 to 27, the prices for gasoline and diesel at 226 highway gas stations managed by the Korea Expressway Corporation will be lowered by 100 won per liter compared to prices on September 17. The government explained that this measure aims to share the burden of high fuel costs with the public.
Based on Opinet prices, the expected selling prices at highway gas stations during Chuseok are projected to be 1,744 won per liter for gasoline and 1,734 won for diesel. Compared to the average selling prices at gas stations nationwide in the third week of September, gasoline will be about 115 won lower, and diesel will be about 110 won lower.
Concerns have been raised by the general gas station industry regarding the additional discounts applied only to highway gas stations. The Korea Gas Station Association has demanded measures to address potential fairness issues, stating that widening the price gap between highway gas stations and regular self-service stations could distort normal price competition and lead to customer loss.
One gas station representative noted, "The selling prices at highway gas stations during the Chuseok holiday are lower than the prices supplied by refiners. While international oil prices and supply prices are rising, consumer prices are being lowered through policy measures, creating a significant price disparity on the ground."
* This article has been translated by AI.
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