South Korea Defies Oil Price Surge with 17th Straight Week of Falling Gas Prices

South Korean gasoline prices continued their downward trend for the 17th consecutive week, defying the recent surge in international oil prices. According to data from Opinet, the average retail price of regular gasoline at South Korean gas stations stood at 1,859.1 won per liter (approximately $1.4) as of September 10.

The government's oil product price cap system is credited with curbing the pass-through of international oil price gains into domestic consumer prices. The current nationwide average gasoline price exceeds the 9th price cap by 75.1 won, indicating that the price cap functions more as an indirect buffer than a direct price ceiling.

The surge in international oil prices, however, has not gone unnoticed. Dubai crude spiked to $114.7 per barrel (approximately 150,000 won) due to Middle East supply concerns and expectations of a prolonged conflict. In response, the Trump administration is reportedly considering invoking the Defense Production Act to address soaring fuel prices.