Nationwide gas prices in South Korea have continued to decline for the 17th consecutive week, even as international oil prices surged due to conflicts in the Middle East. Analysts attribute the drop in domestic prices to the government's maintenance of a maximum oil price system, which limits the impact of rising global prices on local sales.
According to the Korea National Oil Corporation's oil price information system, Opinet, the average price of gasoline at gas stations across the country fell by 1.1 won to 1,859.1 won per liter during the second week of September (September 6-10).
In terms of regional prices, Seoul recorded the highest average at 1,905.3 won, down 1.3 won from the previous week, while Daegu had the lowest at 1,832.1 won, a decrease of 0.9 won. Among brands, GS Caltex stations had the highest price at 1,862.3 won per liter, while discount gas stations reported the lowest at 1,849.2 won. The average price of diesel nationwide also fell by 0.5 won to 1,844.0 won.
In contrast to domestic prices, international oil prices have seen significant increases. Concerns about disruptions in crude oil transportation due to the escalation of conflicts in the Middle East, along with fears of a prolonged war, have contributed to this rise.
The price of Dubai crude, which serves as a benchmark for South Korea's imported oil, rose by $14.4 to $114.7 per barrel this week. International gasoline prices increased by $9.9 to $131.2 per barrel, while international diesel prices rose by $5.6 to $170.4 per barrel.
In response to the surge in oil prices, the United States is also considering measures. The Trump administration is reportedly reviewing options to expand domestic refining capacity under the Defense Production Act (DPA). According to foreign media, President Trump met with representatives from over ten U.S. refining companies on September 1 to discuss utilizing the DPA.
The DPA, enacted shortly after the outbreak of the Korean War in 1950, allows the president to require private companies to increase production of essential materials for national security. The rising gasoline prices due to soaring international oil prices have become a significant concern for the Trump administration ahead of the midterm elections, prompting discussions on expanding refining supply.
Typically, fluctuations in international oil prices are reflected in domestic gas station prices with a delay of two to three weeks. However, the government's implementation of the maximum oil price system is expected to create a divergence between international oil prices and domestic sales prices for the time being.
On August 21, the government set the ninth maximum oil price at the same level as before, with gasoline priced at 1,784 won per liter, diesel at 1,773 won, and kerosene at 1,380 won. The tenth maximum oil price is scheduled to be announced at the end of this month.
* This article has been translated by AI.
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