Gasoline and diesel prices at gas stations nationwide continued their double-digit decline for the second consecutive day, attributed to the implementation of the government's oil price cap system.
According to Opinet, the Korea National Oil Corporation's oil price information system, the nationwide average gasoline price stood at 1,851.9 won per liter as of 9 a.m., down 12.2 won from the previous day. Diesel prices also fell 16.6 won to 1,856.1 won per liter.
Diesel remains priced higher than gasoline. However, the price gap, which once exceeded 20 won, is narrowing. Under the price cap system, the maximum supply price for diesel was set lower than gasoline, accelerating diesel's price decline.
Fuel prices in Seoul are also trending downward. The average gasoline price in Seoul fell 16.5 won to 1,871.1 won, while diesel dropped 16.2 won to 1,863.1 won.
Domestic fuel prices have been declining since hitting their peak on the 10th following the outbreak of the U.S.-Iran war. The downward trend in gasoline and diesel prices has become more pronounced since the price cap system took effect on the 13th. On that day, the nationwide average gasoline price fell approximately 15 won to 1,883.8 won, while diesel dropped 21.1 won to 1,897.9 won.
However, international oil prices are rising sharply amid the Strait of Hormuz blockade. Dubai crude, the benchmark for Korean oil imports, rose $34.6 from the previous week to $123.5. International gasoline prices climbed $25.3 to $126.3, while international automotive diesel increased $37.5 to $176.5.
Changes in international oil prices typically take two to three weeks to be reflected in domestic gas station prices. However, observers say the implementation of the price cap system makes it difficult to predict fuel price trends for the time being.