South Korea gasoline prices drop below 1,900 won/liter for first time in two months

Gasoline prices in South Korea have dipped below 1,900 won per liter, marking the first time in approximately two months, thanks to a government-led reduction in maximum oil product prices. This development is accompanied by forecasts of continued price declines.

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The average gasoline price nationwide was 1,989.26 won per liter, down 6.84 won from the previous day.

The easing of tensions in the Middle East and the subsequent stabilization of international oil prices have contributed to the decrease in domestic fuel costs. As of noon on June 28, the average gasoline price nationwide stood at 1,989.26 won per liter, down 6.84 won from the previous day, according to the Korea National Oil Corporation's price information system, Opinet. Diesel prices also saw a slight decrease, averaging 1,980.24 won per liter.

This marks the second consecutive day of falling prices, with the average gasoline price dropping below the 1,900 won threshold for the first time since April 17. The government's decision to lower the maximum price by 150 won per liter for both gasoline and diesel is seen as the primary driver behind the current market trend.

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The average gasoline price nationwide fell to 1,996.1 won per liter on the first day of the 7th maximum price implementation, and fell further in just one day.

While the new maximum prices are set at 1,784 won for gasoline, 1,773 won for diesel, and 1,380 won for kerosene, regional variations exist. Most areas, excluding Seoul and Jeju, are reporting average gasoline prices in the 1,900 won range, with Incheon showing the lowest at 1,951 won.

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The average gasoline price nationwide fell to the 1,900 won range for the first time in about two months since April 17.

Analysts suggest that with gas stations typically adding a margin of around 100 won per liter to the supply price, gasoline and diesel could potentially fall into the 1,800 won range. However, some stations may face delays in price adjustments due to existing inventory purchased at higher prices. Despite this, a significant number of stations have already lowered their prices, with about one-third of gas stations nationwide reducing their prices on the first day of the new maximum price implementation.

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The government has set the maximum price per product at 1,784 won for gasoline, 1,773 won for diesel, and 1,380 won for kerosene.