In the aftermath of the collapse of the global supply chain and the rise in energy prices due to the power shortage in China, an emergency light was turned on in Korea’s price-related indicators. The international oil price experienced by Koreans has approached $100 per barrel, and domestic gasoline prices, including Busan, have soared to the highest level in more than seven years.
According to the Korea National Oil Corporation on the 17th, the spot price of Dubai crude was 82.28 dollars per barrel on the 14th. It is the highest figure in three years since October 4, 2018 ($84.44). However, this is literally the price in ‘dollars’, but when converted into the Korean won that people feel, the aspect is different.
The day when the won/dollar exchange rate was the highest recently was on the 12th, recording 1198.8 won based on the closing price. Considering that the spot price of Dubai oil was $82.07 per barrel based on the closing price of the day, the price per barrel converted to KRW is 98,385 won (1198.8 won × $82.07). In the past, the closest time to this price was September 15, 2014 (98,807 won). In the end, it can be seen that the current felt oil price, taking into account the exchange rate, approached 100 dollars per barrel as on September 15, 2014 (95.19 dollars).
The simultaneous surge in oil prices and the exchange rate has a negative impact on consumer prices, including domestic gasoline prices. The average selling price of regular gasoline at Busan gas stations on the 16th was 1692.40 won per liter, the highest in seven years since November 30, 2014 (1692.45 won).
The consumer price inflation rate this month is also expected to soar to the 3% level for the first time in about 10 years since February 2012 (3.0%). If the effect of the telecommunication fee support, which lowered the inflation rate by 0.1% in October last year, disappears, and the effects of oil prices and the exchange rate are reflected, a significant increase is unavoidable. Reporter Lee Seok-joo [email protected]