Fuel prices at gas stations in South Korea have seen a noticeable decrease following the government’s implementation of a temporary price cap system last week. The Ministry of Trade, Industry and Resources announced on Monday that they are committed to alleviating energy supply concerns stemming from the ongoing Middle East crisis.
According to data compiled by the ministry, the average gasoline price nationwide reached 1,840.1 won ($1.23) per liter as of Sunday. This represents a significant drop of 58.7 won since Thursday, the day before the price ceiling system was introduced.
Diesel prices have also decreased substantially, with the average retail price falling by 77.8 won to 1,841.2 won per liter during the same period.
The price reductions are a direct result of the government’s decision to implement a price cap on petroleum products supplied by oil refineries to gas stations. This measure aims to ease the financial burden on consumers caused by rising fuel costs, exacerbated by supply uncertainties related to the conflict in the Middle East.
The initial price ceiling was set at 1,724 won per liter for regular gasoline, 1,713 won per liter for diesel, and 1,320 won per liter for lamp oil. These thresholds will be reassessed every two weeks to reflect fluctuations in international oil prices.
During a meeting with industry representatives on Monday, Industry Minister Kim Jung-kwan noted that the decline in retail fuel prices is occurring at a slower pace than anticipated. He emphasized that once gas stations exhaust their existing fuel inventories purchased before the price cap system, retail prices should further decrease.
Minister Kim also affirmed the government’s commitment to utilizing “all available resources” to ensure that consumers experience the full benefits of the maximum price system at gas stations. He pledged to continue monitoring oil prices and conducting on-site inspections to combat unfair market practices.
