Fuel prices at South Korean gas stations continued to rise on the 7th despite the government's crackdown on price collusion and hoarding that fuels oil price increases.
According to Opinet, the Korea National Oil Corporation's oil price information system, the national average gasoline price stood at 1,889.43 won per liter as of 4 p.m., up 17.61 won from the previous day. Diesel, which has already surpassed gasoline prices, rose 23.26 won to 1,910.59 won, breaking through the 1,900 won threshold.
In Seoul, where fuel prices are the highest nationwide, both gasoline and diesel entered the mid-1,900 won range. Seoul's average gasoline price rose 11.43 won to 1,941.71 won per liter, while diesel climbed 9.74 won to 1,963.36 won.
However, the pace of increase notably slowed compared to the previous day. While national gasoline prices rose 37.6 won and Seoul prices jumped 41.6 won at the same time the day before, both increases remained in the 10 won range on the 7th. Diesel price increases also moderated to around 20 won nationally and under 10 won in Seoul, compared to 57.1 won and 58.8 won respectively the previous day.
On a weekly basis, gas station fuel prices have been rising for three consecutive weeks. In the first week of March (1st-5th), the national average gasoline price reached 1,746.5 won per liter, up 55.3 won from the previous week. The average diesel price rose 86.3 won to 1,680.4 won per liter during the same period.
The recent surge in international oil prices is cited as the main driver of domestic fuel price increases. Following U.S. attacks on Iran, geopolitical tensions in the Middle East have intensified, and Iran's move to blockade the Strait of Hormuz has caused both international and domestic oil prices to spike.
Dubai crude, the benchmark for imported oil prices, recorded $86.1 per barrel, up $15.6 from the previous week. International gasoline prices rose $19.1 to $98.0, while international automotive diesel surged $42.6 to $134.8.
Changes in international oil prices typically take two to three weeks to be reflected in domestic gas station prices. A Korea Petroleum Association official said, "Due to the rise in petroleum product prices in the fourth week of February and the recent deterioration of Middle East conditions including the Strait of Hormuz blockade, domestic gas station prices are expected to continue rising next week."
Domestically, the steeper increase is attributed to rising fuel demand driven by market anxiety and some gas stations quickly raising prices.
The government has decided to strengthen enforcement against market manipulation. It will operate an inter-ministerial petroleum market inspection team involving the Ministry of Economy and Finance, Ministry of Trade, Industry and Energy, Fair Trade Commission, National Tax Service, and local governments, and conduct special inspections targeting gas stations at high risk for illegal petroleum distribution.
Three petroleum industry associations—the Korea Petroleum Association, Korea Oil Distribution Association, and Korea Gas Station Association—have also agreed to actively cooperate to prevent international oil price increases from being excessively reflected in domestic prices. Refiners plan to transparently disclose supply prices and provide sufficient volumes to maintain market order. Distribution organizations will also request price stabilization cooperation and conduct guidance activities for petroleum distributors and gas station operators.