Domestic fuel prices fall for second day under oil price cap system

[Financial News] On the 14th, the second day since the oil price cap system took effect, average fuel prices at gas stations nationwide fell by double digits for a second straight day.
According to Opinet, the oil price information system run by Korea National Oil Corporation (KNOC), as of 9 a.m. the nationwide average gasoline price at gas stations stood at 1,851.9 won per liter, down 12.2 won from the previous day.
The average diesel price at the same time was 1,856.1 won per liter, a decrease of 16.6 won from the day before.
Diesel remains more expensive than gasoline, but the price gap between the two fuels, which at one point exceeded 20 won, has narrowed significantly.
Analysts attribute this to the oil price cap system, under which the maximum supply price for diesel was set lower than for gasoline, leading to a steeper drop in diesel prices.
Prices at gas stations in Seoul, the region with the highest fuel costs in the country, also continued to decline. The average gasoline price in Seoul fell 16.5 won from the previous day to 1,871.1 won per liter, while diesel dropped 16.2 won to 1,863.1 won.
Domestic fuel prices at gas stations have been on a downward trend since hitting their highest level on the 10th, following the outbreak of war between the United States and Iran.
International oil prices rose this week on concerns over a possible blockade of the Strait of Hormuz and production cuts by Middle Eastern oil producers, but the increase was limited after the International Energy Agency (IEA) agreed to release strategic oil reserves.
Dubai crude oil, which serves as the benchmark for imported crude prices, averaged 123.5 dollars per barrel, up 34.6 dollars from the previous week. International gasoline prices climbed 25.3 dollars to 126.3 dollars, while automotive diesel rose 37.5 dollars to 176.5 dollars.
clean@fnnews.com Lee Jeong-hwa Reporter