As international diesel prices soared in the aftermath of Russia’s invasion of Ukraine, diesel prices at domestic gas stations are continuing to rise.
International diesel prices have risen sharply amid a supply disruption centering on European countries that are highly dependent on diesel from Russia.
Diesel prices at domestic gas stations, which follow international diesel prices with a time lag of 2-3 weeks, are at their highest since 2008. As a result, the burden on the freight and logistics industry, which mainly uses diesel vehicles, is increasing.
According to the Korea National Oil Corporation oil price information service Opinet on the 26th, the selling price of diesel at gas stations nationwide in the fourth week of this month (March 20-24) was 1918.1 won per liter, up 15.6 won from the previous week. It is the highest price in about 14 years since the fourth week of July 2008 (1932 won).
Domestic diesel prices are usually 200 won cheaper than gasoline due to the differential application of fuel tax. The price of diesel in Seoul was over 2,000 won per liter on weekdays.
Meanwhile, in the fourth week of this month, gasoline price recorded 2001.9 won per liter, up 7.5 won from the previous week. Domestic gasoline prices have risen for 10 consecutive weeks, recording the highest price since the fourth week of October 2012 (2003.8 won).
The price of gasoline in Jeju, the highest price region, rose by 9.1 won from Jeonju to 2108.2 won per liter, and in Jeonbuk, the lowest price region, it recorded 1974.9 won, up 6.3 won from the previous week.
International oil prices also rose this week. The price of Dubai crude, which is the standard for domestic imported crude oil, stood at $112.1 per barrel this week, up $8.2 from the previous week.
International gasoline prices rose by 8.9 dollars from the previous week to $130.1 per barrel, and international diesel prices rose by 21.3 dollars to 147.5 dollars per barrel.
Meanwhile, the government has decided to extend the 20% fuel tax cut, which was originally scheduled to end at the end of next month, by three months. When the fuel tax is cut by 20%, in theory, the price of gasoline is 164 won per liter and diesel price is 116 won per liter.
The government is also planning to consider expanding the range of fuel tax cuts if international oil prices rise more steeply.