South Korea Gas Prices Continue Downward Streak Amid International Oil Price Rise

South Korea's gasoline prices have been falling for 14 consecutive weeks, reaching a new low of 1,862.5 won ($1.3) per liter in the third week of August. This decline is despite an increase in international oil prices due to Middle East supply concerns.

The nationwide average gasoline selling price at gas stations decreased by 1.7 won from the previous week, while the average diesel selling price fell by 1.4 won. Seoul posted the highest gasoline price in the country at 1,908.9 won ($1.4) per liter, down 1.0 won from the prior week.

The South Korean government operates a maximum oil price system to ease the burden of domestic price increases stemming from international oil price fluctuations. The Ministry of Trade, Industry and Energy designated the 9th round of maximum oil prices on August 21 at the same level as the 8th round, with prices set at 1,784 won ($1.3) per liter for gasoline, 1,773 won ($1.3) for diesel, and 1,380 won ($0.9964) for kerosene.

Analysts note that it typically takes two to three weeks for international oil price movements to be reflected in domestic pump prices, so the recent upward trend could affect domestic fuel prices going forward.