Gasoline and diesel prices at gas stations nationwide fell for a 10th straight week. However, as military tensions in the Middle East rose and concern grew over oil transport routes in the Red Sea, the decline narrowed from the previous week.
According to Opinet, the oil price information system of Korea National Oil Corporation (KNOC), on the 25th, the average retail price of gasoline at gas stations nationwide in the fourth week of July (19–23) was 1,872.4 won per liter, down 5.1 won from the previous week.
Gasoline prices continue to fall, but the decline is shrinking quickly. In the second week of July, they fell 59.1 won per liter from the previous week, and in the third week, they dropped 15.5 won. This week, the decrease was limited to 5.1 won.
By region, Seoul had the highest average gasoline price at 1,911.3 won per liter nationwide. It fell 2.5 won from the previous week. Ulsan, with the lowest price, was tallied at 1,845.4 won, down 5.2 won.
By brand, GS Caltex gas stations had the highest average gasoline price at 1,876.7 won per liter, while budget gas stations were the lowest at 1,864.8 won.
The nationwide average retail price of diesel at gas stations was 1,856.9 won per liter, down 5.6 won from the previous week. Compared with declines of 62.3 won in the second week of July and 17.7 won in the third week, the drop in diesel prices narrowed significantly.
The narrowing in domestic fuel price declines is because international oil prices surged amid instability in the Middle East. In addition to the United States hinting it may launch large-scale military strikes against Iran and Yemen's Iran-aligned Houthi militants, concern over supply disruptions grew after a Saudi Arabian oil tanker was attacked in the Red Sea.
Dubai crude, the benchmark for prices of oil imported into Korea, was $97.2 per barrel this week, up $21.4 from the previous week. International gasoline prices rose $18.7 to $124.7 per barrel, and international automotive diesel rose $24 to $167.6.
Changes in international oil prices are usually reflected in retail prices at domestic gas stations with a lag of two to three weeks. Accordingly, if international prices keep rising, domestic gasoline and diesel prices could soon turn upward.
To reduce the impact of rising international oil prices on domestic consumer prices, the government froze the maximum prices for petroleum. Starting at midnight the same day, the eighth round of maximum petroleum prices, applied for four weeks, was kept at the same level as the seventh round. The maximum prices by product are 1,784 won per liter for gasoline, 1,773 won for diesel, and 1,380 won for kerosene.