The government’s fuel tax cuts have slowed… International oil prices are on the rise again
There is also a prospect of extending the fuel tax cut, which ends on April 30.
As international oil prices begin to show an upward curve, gasoline prices are on the rise again.
According to the Korea National Oil Corporation oil price information site ‘Ofinet’ on the 22nd, the national average gasoline price is trading at 1,644 won, up 2.54 won from the previous day. Since the last 10 days, the decline has ended and the price is rising by 1~2 won every day.
In many frontline gas stations, gasoline was sold at a price that was higher than the average price. An official at a gas station in Yongin-si, Gyeonggi-do, told JTBC that “the current price of gasoline is 1,788 won as of today,” and “it is a lot higher than the previous week.”
Even in Seoul, it was hard to find a place with a lower than average price. An official at a gas station in Jung-gu, Seoul, where the price of gasoline is 2,294 won as of today, said in a telephone conversation with JTBC, “The price of gasoline has not fallen recently and it continues to remain high.”
As of today, the price of gasoline in the provinces was between 1590 won and 1710 won, which was slightly lower than that of the metropolitan area, but mostly exceeded the average gasoline price announced by Officenet.
Earlier, the government temporarily lowered the fuel tax by 20% from November 12 last year in order to stabilize prices and reduce the burden on the common people. As a result, gasoline fell 164 won per liter, diesel 116 won and LPG 40 won. The fuel tax cut was effective, and weekly gasoline prices across the country fell for the ninth consecutive week.
However, due to the impact of international oil prices, gasoline prices began to rise. According to Offinet, on the 19th (local time), the price of West Texas Intermediate (WTI) crude oil from the United States recorded $86.96 per barrel, up 1.8% from the previous day. That’s an increase of $10 per barrel in over a month.
The price of Brent crude in the UK also stood at $88.44 per barrel. This is the first time in seven years since the price rose in October 2014 due to the threat of a Russian attack on Ukraine and a drone attack on an oil facility in the United Arab Emirates.
As there are predictions that the economy will take a direct hit due to a surge in gasoline prices, some predict that the government may extend the fuel tax cut, which ends on April 30.
