Gasoline prices jump 132 won in a week

The prices of gasoline jumped by the largest margin in Korea last week since the Asian Financial Crisis in 1997. International oil prices that surged due to Russia’s invasion into Ukraine has apparently been reflected in gas princes in Korea.

According to Opinet, a website operated by the Korea National Oil Corporation, on Sunday, the retail prices of gasoline at gas stations nationwide hit 1,994.4 won (1.64 U.S. dollars) per liter in the third week of this month, up 132.8 won (10.9 cents) from the previous week. The weekly gasoline prices have been on an upward trend for nine consecutive weeks and hit the highest level since October 2012 (2,003.76 won per liter). The prices gained more than 100 won (8.2 cents) in a week period since the third week of December 1997 (161.3 won) during the Asian financial crisis.

Since the international oil prices momentarily surpassed 130 dollars per barrel during trading hours early this month, before falling to the 100-dollar level lately, domestic oil prices will likely remain flat going forward. Generally, changes in international oil prices affect the oil prices in Korea about two to three weeks later. The average daily prices of gasoline nationwide fell since March 16 (2,004.23 won or 1.649 dollars per liter) to stand at 2,002.07 won (1.647 dollars) as of 3 p.m. on Sunday. “The international oil prices are on the decline due to negotiations over armistice between Russia and Ukraine, and a hike in the benchmark interest rate in the U.S.,” KNOC said.


Teuk-Gyo Koo kootg@donga.com