As international oil prices remain high at around $100 per barrel, the South Korean government has decided to freeze the maximum prices for gasoline, diesel, and kerosene for an additional four weeks. This decision comes amid ongoing instability in the Middle East and a 14.8% increase in oil prices compared to a year ago, which continues to burden consumers.
The Ministry of Trade, Industry and Energy announced on the 16th that the 11th maximum price for petroleum products, effective from midnight on the 17th, will remain the same as the previous 10th price. The maximum prices apply to the oil products supplied by refiners to gas stations.
Accordingly, the 11th maximum prices will be set at 1,784 won per liter for regular gasoline, 1,773 won for diesel, and 1,380 won for kerosene. After reducing the 7th maximum price by 150 won per type on June 27, the prices have remained consistent from the 8th to the 11th maximum price.
This decision takes into account high international oil prices, the burden on consumers, and the supply situation of oil. According to the ministry, tensions in the Middle East persist, with ongoing attacks by Iran on vessels passing through the Strait of Hormuz and assaults by Houthi rebels on key facilities in Saudi Arabia.
International oil prices are also elevated. On October 15, Brent crude was priced at $105.9 per barrel, similar to the $105.8 recorded during the designation of the 10th maximum price in the third week of September. During the same period, Dubai crude decreased from $124.9 to $107.0 but still remained above $100. West Texas Intermediate (WTI) was recorded at $98.0.
International petroleum product prices are also high. On October 15, the international gasoline price was $133 per barrel, and diesel was $170, lower than the $143 and $193 recorded in the third week of September.
The burden of energy prices on domestic consumers remains significant. Although the consumer price inflation rate slowed to 2.9% in September, oil prices rose by 14.8% compared to the same month last year. Even with the implementation of the maximum price system, the public continues to feel the pressure of energy costs.
Domestic sales of petroleum products have generally decreased. The combined sales of gasoline and diesel at gas stations in September fell by 3.7% compared to the same month last year. Cumulative sales from the second week of March, when the maximum price system was implemented, to the second week of October showed a decrease of 1.7% for gasoline and 7.6% for diesel.
While gasoline sales in September increased by 3.0% compared to the previous year, the ministry attributes this to concentrated demand during the shorter Chuseok holiday and special discounts at highway gas stations. Approximately 80% of the increase in gasoline consumption, about 36,000 kiloliters, occurred during the Chuseok week. However, gasoline sales in the first and second weeks of October decreased by 5.5% compared to the same period last year.
In light of the domestic consumption decline, the refining industry is requesting a relaxation of export restrictions on petroleum products. The government plans to communicate with the industry to explore ways to manage export volumes, ensuring there are no issues with domestic supply.
The government currently sees no immediate problems with crude oil supply, having secured over 100% of the average import volume for October and November compared to the previous year.
A ministry official stated, "Given the ongoing tensions in the Middle East, we will continue to promote stability in people's livelihoods through the maximum price system and operate it in accordance with domestic and international circumstances."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.