2024-08-05 13:54:39
As the fuel tax reduction measure was implemented in earnest last month, oil prices responded immediately and rose.
Gasoline prices rose the most in more than two years, while diesel prices rose the most in a year and a half.
According to the National Statistical Information Service (KOSIS) of Statistics Korea on the 4th, the consumer price inflation rate in July was 2.6%, the first increase in four months since March (3.1%).
The consumer price inflation rate peaked at 3.8% in October last year and slowed to 2.8% in January this year. It then rebounded to the 3% range in February and March (3.1% each), but stabilized in the mid-to-high 2% range for three consecutive months in April (2.9%), May (2.7%), and June (2.4%).
The rebound in consumer price inflation after four months was largely due to the impact of oil prices. The oil price inflation rate in July was 8.4%, the highest in 21 months since October 2022 (10.3%).
In particular, the contribution of petroleum products to the overall consumer price inflation rate also doubled to 0.32 percentage points (p) compared to the previous month (0.16%). This also means that petroleum product prices drove up more than 0.3 percentage points of the overall price inflation rate (2.6%) in July.
Gong Mi-sook, director of economic trends statistics at Statistics Korea, explained in a briefing on the 2nd, “This is due to the smaller reduction in fuel tax and the rise in international oil prices,” adding, “In particular, there is also a base effect due to the very low international oil prices last year.”
The government previously extended the fuel tax cut, which was scheduled to end at the end of June, by two months until the end of this month, and adjusted the reduction rates for gasoline from 25% to 20% and for diesel from 37% to 30%.
If this happens, the price of gasoline will rise by 41 won per liter and that of diesel by 38 won per liter, assuming there are no external variables such as fluctuations in the margins of oil refineries.
It was also found that the reduction in the fuel tax rate had an immediate impact on oil prices.
The July gasoline price increase rate was 7.9%, the largest increase in 23 months since August 2022 (8.5%). In August of the year before last, international oil prices fluctuated due to the possibility of a production cut by OPEC+, a group of major oil producing countries.
Here, the rate of increase in fuel prices was 10.5%, the highest in 18 months since January last year (15.5%).
According to the Korea National Oil Corporation’s oil price information system, Opinet, the average gasoline selling price at gas stations nationwide in July was 1,707.1 won, and the average diesel selling price was 1,542.5 won.
Compared to the previous month, June, gasoline prices rose by 49.8 won and diesel prices rose by 54.9 won.
(Sejong=News 1)
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2024-08-05 13:54:39