As the government has enforced a "petroleum price ceiling system" that caps oil product prices for more than a month, gas stations are facing worsening business difficulties, with data confirming that sales volumes have fallen despite efforts to curb fuel prices. Ninety percent of gas stations in Korea are independently run by individual business owners.
According to data released by the Ministry of Trade, Industry and Resources on the 17th, total gasoline and diesel sales during the first and second phases of the petroleum price ceiling system (the 3rd and 4th weeks of March, the 1st and 2nd weeks of April) were tallied at 2,551,731 kiloliters (kL). That was down 5% from the same period a year earlier (2,690,734 kL). In addition, for three of the four weeks—excluding the fourth week of March—sales of oil products fell from a year earlier.
In contrast, sales of oil products rose in the first week of March, immediately after the Middle East war broke out on Feb. 28 and before the price ceiling system took effect. During this period, gasoline and diesel sales totaled 672,554 kL, up 8% from the same period last year (621,371 kL). As fuel prices climbed steeply at the time, it appears that speculative demand—people deciding that "now is the cheapest" and topping up in advance—had an effect.
After criticism that gasoline and diesel consumption actually increased following the introduction of the price ceiling, the government released data the previous day aggregating actual oil product sales to refute the claim. However, from the perspective of gas stations, the figures confirm that product sales volumes have fallen. Because a drop in sales volume directly affects gas station revenue, it means operating a station has become more difficult.
Rising gasoline and diesel prices are cited as the reason behind the decline in oil product consumption. As of 8 a.m. that day, the average gasoline price at gas stations nationwide was 1,999.33 won and the diesel price was 1,993.23 won, on the verge of breaking 2,000 won. Before the war broke out (Feb. 27), the nationwide average gasoline and diesel prices at gas stations were 1,692.58 won and 1,597.24 won, respectively. On the day before the price ceiling took effect (March 12), they were 1,898.78 won and 1,918.97 won.
Gasoline sales this month were similar, but diesel in particular fell sharply. Diesel sales this month were 673,860 kL, down 14% from the same period a year earlier (782,901 kL). Diesel serves as a key power source across industries that underpin the national economy, including freight, shipping and construction. This suggests the real economy is freezing amid high oil prices and the impact of the war.
A gas station operator said, "The number of customers has fallen to about half of normal," adding, "Compared with the nearby company-run and budget gas stations, the price difference is about 10 won per liter, but with sales cut in half, it's hard even to cover labor costs."
Another gas station operator said, "As diesel gets expensive, I can sense that truck owners who drive for a living are reducing trips or shopping around and going to other stations," adding, "Fuel costs run into the hundreds of thousands of won a month, and even a 100-won-per-liter increase in diesel makes a difference of tens of thousands of won."