"Price-fixing is a serious crime"—did the government warning work? Rise in fuel prices slows

Korea Economic Daily

Summary

Average nationwide gasoline and diesel prices are still rising, but the pace of increases has slowed, it said.
It reported analysis that the uptrend in fuel prices has cooled somewhat after the government’s review of designating price ceilings and its stern warning that "price-fixing is a serious crime."
It said domestic fuel price increases are expected to continue for the time being, as movements in international oil prices are reflected with a time lag.

Forecast Trend Report by Period

As oil prices surge and the government considers designating price ceilings, the upward trend in fuel prices at gas stations nationwide appears to be easing somewhat.

According to Opinet, the Korea National Oil Corporation’s oil price information system, as of 9 a.m. on the 8th the national average gasoline price at gas stations stood at 1,893.3 won per liter, up 3.9 won from the previous day.

Diesel prices are still holding at a level higher than gasoline. At the same time, diesel was 1,915.4 won, up 4.8 won.

Fuel prices in Seoul also continued to rise, but the increase was limited. The average gasoline price in Seoul was 1,944.7 won per liter, up 3.0 won from the previous day, while diesel rose 4.9 won to 1,968.2 won.

Compared with the recent pace of increases of several dozen won a day, the rise has slowed markedly, prompting analysis that the market is cooling somewhat following the government’s stern warning.

Still, since changes in international oil prices are reflected in domestic pump prices with a lag of about 2–3 weeks, domestic fuel prices are expected to keep rising for the time being.

Ko Jeong-sam, Hankyung.com reporter jsk@hankyung.com