Summary
- Average gasoline and diesel prices at gas stations nationwide continued to rise on the second day of the third fuel price cap.
- The government kept the third fuel price cap unchanged from the second round at 1,934 won for gasoline, 1,923 won for diesel and 1,530 won for kerosene.
- Although global oil prices edged lower, domestic gas station prices are likely to remain under upward pressure for some time because of a two- to three-week lag and existing price momentum.
Forecast Trend Report by Period
Average fuel prices at gas stations across South Korea rose again on the second day of the government's third fuel price cap, though the pace of increases slowed from a day earlier. Consumer prices at the pump remained on an upward trend.
Data from Opinet, the country's fuel price information system, showed the nationwide average gasoline price at 1,990.7 won a liter as of 9 a.m. on April 11, up 1.8 won from a day earlier. The nationwide average diesel price rose 1.5 won to 1,984.2 won a liter at the same time.
Prices in Seoul also continued to climb. Average gasoline in the capital rose 1.3 won from the previous day to 2,024.0 won a liter, while diesel gained 1 won to 2,009.6 won a liter.
The increases were smaller than a day earlier. At the same time on the previous day, nationwide gasoline and diesel prices had risen 2.6 won and 2.9 won, respectively. In Seoul, gasoline and diesel had climbed 1.5 won and 2.8 won. On April 11, the size of the gains narrowed both nationwide and in the capital.
The fuel price cap places a ceiling on refiners' supply prices to gas stations. It was first introduced on March 13, followed by a second round on March 27. The third round took effect on April 10.
The third-round cap was unchanged from the second. The ceiling was set at 1,934 won a liter for gasoline, 1,923 won for diesel and 1,530 won for kerosene. The government said it made the decision after considering recent volatility in global oil prices and the effect on consumer inflation.
Global crude prices edged lower. Ahead of U.S.-Iran end-of-war talks, Brent crude for June delivery settled down 72 cents at $95.2 a barrel on April 10. West Texas Intermediate for May delivery fell $1.3 to close at $96.57 a barrel.
Still, lower global crude prices do not immediately feed through to domestic pump prices. Changes in international oil prices are typically reflected in South Korean retail fuel prices with a lag of about two to three weeks. For now, gas station prices are likely to remain influenced by earlier upward pressure.
Kim Dae-young, Hankyung.com reporter kdy@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
