International Oil Prices Surge, but Domestic Fuel Prices Edge Down; Average Gasoline Price at 1,859.1 Won

[Financial News] As international petroleum-product prices rise amid escalating armed conflict in the Middle East, gasoline and diesel prices at domestic gas stations have declined for 17 consecutive weeks.
According to the Korea National Oil Corporation (KNOC) on the 12th, the nationwide average gasoline price during the second week of September, from the 6th to the 10th, was 1,859.1 won per liter. This was down 1.1 won from the previous week. Diesel prices also fell by 0.5 won over the same period, reaching 1,844.0 won per liter.
By region, gasoline was most expensive in Seoul at 1,905.3 won per liter. Daegu had the lowest price at 1,832.1 won. Compared with the previous week, prices in the two regions fell by 1.3 won and 0.9 won, respectively.
International crude oil and petroleum-product markets continued to trend upward. Concerns grew that the expanding armed conflict in the Middle East could disrupt crude oil transportation, while expectations of a prolonged war also contributed to rising prices.
Dubai crude, the benchmark for imported crude oil in South Korea, rose by $14.4 over the week to $114.7 per barrel. International gasoline prices increased by $9.9 to $131.2, while automotive diesel rose by $5.6 to $170.4.
It generally takes two to three weeks for movements in international oil prices to be reflected in domestic gas-station prices. However, the government is currently reducing the impact on domestic prices through its oil price cap system.
The ninth designated maximum price, set on the 21st of last month, remains at the same level as the eighth. It is 1,784 won per liter for gasoline, 1,773 won for diesel, and 1,380 won for kerosene. The 10th maximum price, the next in the series, is scheduled to be announced at the end of this month.
[email protected] Choi Doo-sun Reporter