Drivers fill up at a gas station at Mannam Plaza in Seocho-gu, Seoul, on Sept. 24, the start of the Chuseok holiday. News1
Gasoline prices at South Korean service stations edged lower for a 19th consecutive week, helped by the government’s ceiling-price program for petroleum products and price cuts at highway stations during the Chuseok holiday.
The average nationwide gasoline price in the fourth week of September, covering the 20th through the 24th, was 1,858.0 won per liter, down 0.6 won from the previous week, according to Opinet, the oil price information system run by Korea National Oil Corporation, on the 26th.
Seoul had the highest prices at 1,904.2 won, down 0.2 won, while Daegu was the cheapest at 1,830.1 won, down 0.6 won.
By brand, GS Caltex stations were the most expensive at 1,861.5 won per liter, while discount Alttle (government-backed low-price) stations were the cheapest at 1,845.9 won. The average nationwide diesel price was 1,843.4 won, down 0.5 won from the prior week.
Global oil prices also declined this week. Concerns over crude supply eased somewhat after Saudi Arabia restarted its East-West pipeline, which had been damaged in an attack by Yemen’s Houthi rebels, and as the United States and Iran discussed a phased agreement.
Dubai crude, the benchmark for South Korea’s crude imports, fell $11.9 from the previous week to $113.0 a barrel. International gasoline prices dropped $3.2 to $139.9, while international automotive diesel prices fell $15.9 to $177.4.
Changes in global oil prices typically feed through to domestic pump prices with a lag of two to three weeks.
The government has maintained its petroleum ceiling-price program to limit the impact of global oil price swings on domestic prices. On the 18th, it set the 10th round of ceiling prices at the same level as the ninth. The caps on refiners’ supply prices are 1,784 won per liter for gasoline, 1,773 won for diesel and 1,380 won for kerosene.
During the Chuseok holiday from the 24th to the 27th, Korea Expressway Corporation cut gasoline and diesel prices by 100 won per liter at 226 state-funded highway service stations from the levels on the 17th. Because the cuts took effect only on the 24th and global oil prices fell sharply, domestic pump prices could decline more steeply next week.