Gas prices fall under 2,000 Korean won for 1st time in nearly 2 months

Seoul, June 28 (IANS) The average gasoline price at South Korea’s gas stations again fell from a day earlier on Sunday after dropping under the 2,000-won (US$1.3) mark for the first time in nearly two months the previous day, industry data showed.

The average gasoline price came to 1,991.1 won per liter as of 9 a.m., down 5 won from the previous day’s average, according to the data from the Korea National Oil Corp. (KNOC), reports Yonhap news agency.

It marked the second consecutive day for the average gas price to remain under 2,000 won, after it fell below the threshold for the first time in around two months.

Prices of diesel fell to 1,982.3 won per litre, the data showed.

The drop in energy prices comes amid the government’s decision to lower the price ceiling on fuel prices to reflect the recent decline in global crude prices.

Under the adjustment, maximum prices for regular gasoline, diesel and kerosene supplied to gas stations by local oil refiners have been lowered by 150 won to 1,784 won, 1,773 won and 1,380 won per litre, respectively, starting Saturday.

Global oil prices are also on the decline, with Dubai Crude falling by 34.3 percent over the past month, from US$98 per barrel on May 26 to $64.4 Thursday.

Market watchers expect it would take around two to three weeks for consumers to fully feel the impact of the price drop, as gas stations are still holding inventories purchased previously at higher prices.

“Given the differences in inventory among gas stations, prices are expected to decline progressively by about 50 won per week over the next two to three weeks,” an industry official said.

But it may be difficult for domestic fuel prices to drop to their pre-war levels, the official noted, due to the weakening won and a rise in global petroleum product prices.

The average price of gasoline at local gas stations was 1,691.3 won per litre in the fourth week of February, before the onset of the war between the United States and Iran, according to KNOC data.

—IANS

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