Gasoline prices at domestic gas stations are soaring as international oil prices surge after U.S. and Israeli strikes on Iran.
According to Opinet, the oil price information system of the Korea National Oil Corporation (KNOC), on the 4th, the average gasoline price at Seoul gas stations is 1,820.53 won per liter (ℓ). It rose 32.06 won in a day, breaking through the 1,800-won level for the first time in about three months since December last year.
At the same time, the national average gasoline price at gas stations is also 1,751.44 won per liter and has been rising daily after entering the 1,700-won range this month.
The price increase is steeper than during past conflicts. During the "12-day war" between Israel and Iran that lasted from June 13 to 24 last year, the national average gasoline price rose 2.5% (39.91 won) from 1,626.99 won to 1,666.9 won per liter.
In contrast, during the week from Oct. 7, 2023, when war broke out between Israel and Hamas, the Palestinian militant faction, the national average gasoline price actually fell from 1,793.82 won to 1,779.47 won per liter.
Meanwhile, on the 27th of last month, the day before the United States and Israel struck Iran, the national average gasoline price was 1,692.58 won, but as of today it has jumped 3.4% (58.86 won) to 1,751.44 won.
Refiners have raised supply prices in preparation for a prolonged crisis, and domestic gas stations have begun to adjust retail prices upward as well. A person surnamed A, who runs a gas station in Ansan, Gyeonggi Province, said, "Within two to three days of the war breaking out, the (refiner) raised the supply price," adding, "Today, accordingly, we raised the (gasoline) retail price by about 150 won per liter."
With retail gasoline prices jumping in a short period, low-cost gas stations are crowded with customers trying to fill up in advance. The problem is that this conflict could last more than a month.
For now, Iran's Islamic Revolutionary Guard Corps has declared the closure of the "Strait of Hormuz." The Strait of Hormuz is a narrow waterway connecting the Persian Gulf and the Gulf of Oman, a key chokepoint for Middle Eastern oil heading to the world. In particular, 99% of Middle Eastern crude entering Korea passes through the Strait of Hormuz.
President Donald Trump said on the 3rd (local time) that the U.S. Navy would provide military protection to tankers transiting the Strait of Hormuz "if necessary," but international oil prices continue to trend higher.