"We still have inventory, so we didn't raise it. Won't prices go up around Monday (the 30th) after the weekend?" (Employee at A gas station in Hongje-dong, Seodaemun-gu, Seoul)
"Between this weekend and early next week, each gas station will start receiving supplies provided under the second price cap. Then it will rise into the 2,000-won range." (Employee at B gas station in Mapo-gu, Seoul)
"We didn't raise fuel prices today. Headquarters will notify prices early next week, and they will likely go up then." (Employee at company-operated C gas station in Dongdaemun-gu, Seoul)
With the second petroleum price cap taking effect from midnight on the 27th, pump prices appeared to show little change. Remaining inventory purchased at supply prices set under the first petroleum price cap and the fact that nearby stations have not raised prices significantly appear to have had an impact.
However, people on the ground expected fuel prices to rise as early as in two days or within a week at the latest. This is because the supply prices set under the second petroleum price cap rose 210 won each for gasoline, diesel, and kerosene from the first cap, and those volumes will begin to fill station tanks in sequence starting this weekend.
According to ChosunBiz's survey of 10 gas stations across Dongdaemun-gu, Mapo-gu, Seodaemun-gu, Jongno-gu, Jung-gu, and Jungnang-gu in Seoul on the morning of the 27th, except for two stations in Jongno-gu and Jung-gu, five stations were selling gasoline and diesel in the 1,800-won per liter range, and three stations were selling gasoline and diesel in the 1,700-won range.
A gas station A in Seodaemun-gu was selling gasoline and diesel at 1,859 won and 1,849 won per liter, respectively. A company-operated C gas station one subway stop away was also selling gasoline at 1,860 won and diesel at 1,809 won.
G gas station in Dongdaemun-gu sold gasoline and diesel at 1,798 won. I gas station in Jungnang-gu sold gasoline and diesel at 1,799 won and 1,789 won. This undercut projections that fuel prices would jump into the 2,000-won range immediately after the second petroleum price cap took effect.
Gas station employees consistently said they did not raise prices because they still had inventory. An employee at A gas station in Hongje-dong, Seodaemun-gu, said, "We refill the tank once every three days, and we still have volumes introduced under the first petroleum price cap," adding, "The government told us to lower retail prices in line with supply prices, so after this weekend, around Monday, new volumes will come in at higher prices, and we'll likely raise prices accordingly." An employee at I gas station in Jungnang-gu also said, "We didn't raise prices because we have inventory," and added, "After the first price notice, we lowered prices once and have been selling at that level since."
Some raised prices from the previous day regardless of inventory. But the scale of the hikes appears to be at or below the increases under the first and second petroleum price caps, limiting market impact. E gas station in Jung-gu raised gasoline and diesel retail prices by 100 won each from the previous day. An employee at B gas station in Mapo-gu said, "We raised gasoline and diesel by 210 won each from yesterday."
Despite the rollout of the second price cap, fuel prices are not swinging wildly, as confirmed by Opinet, the Korea National Oil Corporation (KNOC)'s oil price information system. As of 1 p.m. on the 27th, the national average gasoline price was 1,835.7 won and the diesel price was 1,831.77 won, up just 16.35 won and 15.97 won, respectively, from the previous day. Gasoline is cheaper than on the third day of the first price cap on the 15th (1,840.09 won), and diesel is also lower than on the fourth day of the first price cap on the 16th (1,831.80 won). Even in Seoul, where fuel is the most expensive nationwide, the average gasoline price as of 1 p.m. was 1,864.08 won and diesel was 1,851.80 won, not reaching 1,900 won.
However, an employee at B gas station in Mapo-gu said, "Within a week to 10 days at the latest, gas stations will start raising prices to reflect volumes coming in at the new supply prices," while adding, "Since the fuel tax was cut, prices could also come down by that amount."
The Ministry of Trade, Industry and Resources announced the second petroleum price cap designation plan at the "minister task force (TF) on special management of cost of living" held at Government Complex Seoul on the 26th. The measure came as the two-week application period for the first petroleum price cap notice, introduced on the 13th, ended.
The price cap is the upper limit on the supply price that refiners charge gas stations. From midnight on the 27th, the maximum wholesale price for gasoline rose to 1,934 won per liter, diesel to 1,923 won per liter, and kerosene to 1,530 won, each up 210 won from the first petroleum price cap. These supply prices apply for two weeks from the 27th to Apr. 9.
At the same time, the government cut fuel taxes. It expanded the fuel tax cuts, currently 7% for gasoline and 10% for diesel, to 15% and 25%, respectively. The per-liter fuel tax for gasoline (including value-added taxes) will decrease by 65 won from 763 won to 698 won, and the per-liter fuel tax for diesel will decrease by 87 won from 523 won to 436 won.