Gas prices fall under 2,000 Korean won for 1st time in nearly 2 months
Seoul, June 28
The average gasoline price at South Korea's gas stations again fell from a day earlier on Sunday after dropping under the 2,000-won mark for the first time in nearly two months the previous day, industry data showed.
The average gasoline price came to 1,991.1 won per liter as of 9 a.m., down 5 won from the previous day's average, according to the data from the Korea National Oil Corp. (KNOC), reports Yonhap news agency.
It marked the second consecutive day for the average gas price to remain under 2,000 won, after it fell below the threshold for the first time in around two months.
Prices of diesel fell to 1,982.3 won per litre, the data showed.
The drop in energy prices comes amid the government's decision to lower the price ceiling on fuel prices to reflect the recent decline in global crude prices.
Under the adjustment, maximum prices for regular gasoline, diesel and kerosene supplied to gas stations by local oil refiners have been lowered by 150 won to 1,784 won, 1,773 won and 1,380 won per litre, respectively, starting Saturday.
Global oil prices are also on the decline, with Dubai Crude falling by 34.3 percent over the past month, from US$98 per barrel on May 26 to $64.4 Thursday.
Market watchers expect it would take around two to three weeks for consumers to fully feel the impact of the price drop, as gas stations are still holding inventories purchased previously at higher prices.
"Given the differences in inventory among gas stations, prices are expected to decline progressively by about 50 won per week over the next two to three weeks," an industry official said.
But it may be difficult for domestic fuel prices to drop to their pre-war levels, the official noted, due to the weakening won and a rise in global petroleum product prices.
The average price of gasoline at local gas stations was 1,691.3 won per litre in the fourth week of February, before the onset of the war between the United States and Iran, according to KNOC data.
— IANS
Reader Comments
Interesting how quickly South Korea moves to adjust fuel prices. Meanwhile, in India, we have a whole system of taxes and subsidies that makes the process painfully slow. The price ceiling approach they are using seems more direct. We could learn a thing or two from their efficiency.
Good for Korean people! But let's be real, 1,991 won is still a lot. 😅 In India we can't even imagine paying ₹140+ for a litre of petrol and having it be a "good deal". The global crude drop is welcome but the real issue is our heavy taxation.
Note how they mention the war between US and Iran... Exactly. Global events have a direct impact on our economy, be it Korea or India. The fact that gas prices haven't returned to pre-war levels in Korea shows how fragile these markets are. We need more domestic energy independence.
Thoda sa relief to mila unko 😅. But here in India, we are still paying through our teeth. Petrol prices are still around ₹100/L even when crude prices fall. The government should reduce excise and VAT. Abhi to common man ki life bohot expensive ho gayi hai.
It's good to see that South Korea is adjusting its fuel prices based on global crude. However, in India, we still have to wait for months to feel the relief. The government needs to take a more proactive approach like South Korea's price ceiling mechanism. But it's a good step for them! 👏
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