High Gas Prices Keep Breaking Records

Gasoline prices have reached record levels for the second consecutive week due to high oil prices. Light oil has been breaking records for four consecutive weeks.

The average purchasing price of gasoline throughout the nation during the second week of May (May 8 to May 12) has been 1544.4 won per liter, according to the Ministry of Commerce Industry and Energy (MOCIE) and the Korean National Oil Corporation (KNOC). This is 1.1 won higher than last week’s record (1543.3 won) and 112.1 won higher than last year’s average price.

Gasoline in Seoul was the most expensive in the nation at 1589.1 won per liter, while that of North Chungcheong Province was the cheapest at 1515.2 won.

MOCIE pointed out that this was due to the fact that international oil prices and gasoline wholesale prices have been persistently rising since the beginning of the year.

“Oil companies lowered the wholesale prices by 1.5 won per liter last week, but it takes a few weeks until the effect of it reaches retail levels,” the ministry added.

Meanwhile, purchasing prices for light oil was 1254.1 won per liter last week, reaching record levels for the fourth consecutive week. Kerosene is priced at 960.4 won per liter, breaking the record level for the third straight week.

Dubai oil, Korea’s main crude oil import, has posted a 36 percent increase in prices, from $47.21 per barrel last April to $64.22 this year.

Lee Won-geol, second deputy minister at MOCIE, said, “Gasoline prices have reached record high levels, but the increase rate is not high compared to international levels.”

legman@donga.com