Gasoline and diesel prices increased by 7.1 won and 6.4 won, respectively, compared to the previous week.
International oil prices fall due to easing geopolitical risks in the Middle East
This week, gas prices at gas stations fell for three consecutive weeks, and the national average price exceeded 1,600 won.
According to Korea National Oil Corporation’s oil price information system Offinet on the 2nd, the selling price of gasoline at gas stations nationwide in the fifth week of October (October 27 to 31) was 1,600.2 won per liter (L), an increase of 7.1 won compared to the previous week.
The sales price in Seoul, the highest price in the country, was 1,670.2 won, up 9.4 won from the previous week, and in Daegu, the lowest price in the country, it was 1,566.8 won, an increase of 10.8 won compared to the previous week.
By brand, thrifty gas stations had the lowest price with an average of 1,571.9 won per liter, and SK Energy gas stations had the highest price with 1,610.2 won per liter.
During the same period, the selling price of diesel at gas stations nationwide was 1,428.7 won per liter, up 6.4 won from the previous week.
International oil prices fell this week due to the easing of geopolitical risks related to the Middle East following Israel’s limited retaliation against Iran.
Dubai oil, the standard for imported crude oil prices, was $71.6 per barrel, down $2.6 from the previous week.
During the same period, the international gasoline price fell by $2.7 to $76.9, and automobile diesel prices decreased by $1.3 to $85.8.
Changes in international oil prices are usually reflected in domestic gas station prices with a lag of 2 to 3 weeks.
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Hot news now
Interview between Time.news Editor and Oil Market Expert
Editor: Welcome to Time.news! Today, we have a special guest, Dr. Kim Jae-Hyun, an expert in oil markets and energy economics. Thanks for joining us, Dr. Kim.
Dr. Kim: Thank you for having me! It’s a pleasure to be here.
Editor: Let’s dive right in. We’re seeing a recent increase in gasoline and diesel prices in South Korea—7.1 won for gasoline and 6.4 won for diesel, to be precise. What’s driving these changes?
Dr. Kim: It’s quite interesting. These price increases, even though they are modest, are a reflection of the underlying market dynamics. As the article mentions, despite this week’s increase, we’ve seen a general downward trend in international oil prices due to reduced geopolitical tensions in the Middle East. This can create a lag effect in domestic pricing.
Editor: So, you’re saying that while international prices are decreasing, local prices can still rise temporarily due to other factors?
Dr. Kim: Exactly. Changes in international oil prices typically take about 2 to 3 weeks to be reflected in domestic gas station prices. Hence, while we’re seeing a slight uptick now, if the international prices continue to fall, we could see those effects trickle down soon.
Editor: Speaking of international prices, the report indicates that Dubai oil prices have dropped to $71.6 per barrel. How significant is this fall and what implications does it have for the market?
Dr. Kim: The $2.6 drop is significant, especially in a fluctuating market. Lower international crude prices generally lead to lower costs for refiners, which can eventually reduce consumer prices. However, factors like local tax policies and distribution costs can mitigate how much of that reduction reaches the consumer’s pocket.
Editor: It was also noted that the highest gas prices are in Seoul at 1,670.2 won per liter. Why is there such a discrepancy between gas prices in different cities, particularly between Seoul and Daegu?
Dr. Kim: That’s a great question! The variation in prices often stems from differing operational costs for gas stations, local taxes, and transportation costs. Seoul is a more densely populated area with higher demand and overhead costs, while Daegu, being less populated, can afford to offer lower prices.
Editor: With prices rising at the pump, how do you foresee consumer behavior changing in response?
Dr. Kim: Consumers typically adjust their spending habits during times of rising fuel costs. We may see increased interest in fuel-efficient vehicles or even a shift towards public transport. It’s a natural adaptation as individuals seek to mitigate rising costs.
Editor: Lastly, what should consumers keep in mind regarding fuel prices in the coming weeks?
Dr. Kim: They should stay informed about global oil market trends and geopolitical developments – these will impact fuel prices. Additionally, as the article mentioned, the lag time in domestic pricing means that current international drops might not yet be reflected in what they pay at the pump. Keeping an eye on both local and international news will be crucial.
Editor: Thank you, Dr. Kim, for your insights and expertise. It’s been enlightening discussing these intricacies with you!
Dr. Kim: Thank you for having me! It’s been a pleasure to share my thoughts on such an important topic.