Nationwide average gas prices in South Korea fell for the third consecutive day on the 13th, following the government's implementation of petroleum price caps for the first time in 30 years.
According to the Korea National Oil Corporation's oil price information system Opinet, the national average gasoline price stood at 1,883.79 won ($1.31) per liter as of 10 a.m., down 14.99 won from the previous day.
Diesel prices fell 21.08 won to 1,897.89 won per liter at the same time. Diesel prices remain higher than gasoline prices.
Gas prices in Seoul also declined. The average gasoline price in Seoul fell 20.66 won to 1,906.4 won per liter. The average diesel price in Seoul dropped 30.64 won to 1,905.53 won.
Domestic gas prices have been declining since hitting a peak on the 10th following the outbreak of the U.S.-Iran war, but remain at elevated levels.
In response, the government implemented petroleum price caps starting at midnight on the 13th, setting maximum supply prices for refiners at 1,724 won per liter for regular gasoline, 1,713 won for automotive diesel, and 1,320 won for indoor kerosene. The move marks the first time the government has resorted to price controls since oil price liberalization in 1997, triggered by surging international oil prices due to the Middle East crisis. The government plans to reassess and reset the maximum prices every two weeks based on the Middle East situation and oil price trends.
Meanwhile, international oil prices surged again after Ayatollah Seyyed Mojtaba Khamenei, newly elected as Iran's Supreme Leader, declared a hardline response against the United States and Israel. Brent crude futures for May delivery closed at $100.46 per barrel, surpassing $100 for the first time in three years and seven months since August 2022.
Changes in international oil prices are typically reflected in domestic gas station prices with a lag of approximately two to three weeks.