Gasoline milk prices at gas stations drop ‘tickle’ for the first time in 11 weeks… Impact of U.S. Oil Reserve Release

[이데일리 박민 기자] Gasoline prices at gas stations across the country fell slightly for the first time in 11 weeks. With the recent drop in international oil prices, there are speculations that the price may go down further in the future.

According to the Korea National Oil Corporation oil price information service Opinet on the 2nd, the average selling price of gasoline at gas stations nationwide in the fifth week of March (3.27-31) was 2000.1 won per liter, down 1.9 won from the previous week. As of the afternoon of the previous day, it fell to 1996.48 won per liter.

Domestic gasoline prices rose for ten consecutive weeks from the third week of January to last week in the aftermath of the rise in international oil prices. This is due to the fact that international oil prices have fallen slightly since the middle of last month due to progress in the ceasefire negotiations between Russia and Ukraine and an increase in the US benchmark interest rate. Usually, domestic oil prices follow the prices of international petroleum products with a time lag of about two weeks.

The average price of gasoline this week in Seoul, the highest price region, was 2068.5 won per liter, down 10.1 won from the previous week, and Gwangju, the lowest price region, recorded 1976.6 won, down 1.6 won from the previous week. Gas stations in Seoul, which have a high inventory turnover rate, can quickly reflect changes in the supply price of refiners, so price changes due to oil price fluctuations appear relatively faster than in other regions.

During the same period, the selling price of diesel at gas stations nationwide was 1919.8 won per liter, up 1.7 won from the previous week. Looking at the weekly average, diesel prices rose this week as well, but the daily average price peaked on the 28th of last month (1920.4 won) and is gradually falling. As of the afternoon of the previous day, the national average diesel price was 1916.9 won per liter.

International oil prices, a leading indicator of domestic oil prices, showed a decline this week due to the US decision to release strategic oil reserves and the lockdown in Shanghai, China due to Corona 19. Dubai crude, which serves as the reference value for crude oil imported from the Middle East, recorded $108.8 per barrel, down $3.2 from the previous week.

An official from the Korea Petroleum Association predicted, “The domestic gasoline price may fall further in the future due to the decline in international oil prices, but the price will not drop to a meaningful level as the high oil price situation continues.”

Meanwhile, the government has extended the 20% fuel tax cut, which was scheduled to end at the end of this month, by three months. In addition, plans are being considered to expand the range of fuel tax cuts from the current 20% to 30%, with a plan to be finalized on the 5th.