Gasoline and Diesel Prices at Domestic Gas Stations Fall for 4 Straight Weeks; Government Freezes Oil Price Cap

[Financial News]  
The weekly average selling prices of gasoline and diesel at domestic gas stations fell slightly for the fourth consecutive week.
According to Opinet, the oil price information system run by Korea National Oil Corporation (KNOC), the national average gasoline price at gas stations in the second week of June (July 7-11) stood at 2,009.9 won per liter, down 0.5 won from the previous week.
By region, gasoline prices in Seoul were the highest at 2,051.5 won per liter, up 0.7 won from the previous week. Daegu Metropolitan City recorded the lowest price at 1,990.6 won per liter, down 1.4 won week on week.
By brand, gas stations operated by SK Energy posted the highest average selling price at 2,013.8 won per liter, while budget gas stations recorded the lowest level at 1,995.9 won per liter.
Diesel prices also continued to decline. The national average diesel price at gas stations this week came to 2,004.8 won per liter, down 0.3 won from the previous week.
International oil prices rose early in the week as clashes between the United States and Iran continued, but gave back those gains and closed lower after U.S. President Donald Trump mentioned the possibility of a ceasefire agreement between the two countries late in the week.
Dubai crude, the benchmark for imported crude oil, fell $4.5 from the previous week to $89.7 per barrel. By contrast, international gasoline prices rose $1.3 to $117.5 per barrel, while international automotive diesel prices fell $7.9 to $140.1 per barrel.
The industry expects these fluctuations to affect domestic fuel prices in the coming weeks, as changes in international oil prices are typically reflected at local gas stations with a lag of two to three weeks.
Meanwhile, the government once again froze the sixth oil price cap, which took effect on May 22. As a result, gasoline will remain at 1,934 won per liter, diesel at 1,923 won, and kerosene at 1,530 won. The latest prices are the same as those set under the second through fifth price caps.

padet80@fnnews.com Park Shin-young Reporter