Gas prices rise to seven-year high as Dubai crude continues rally

Gas prices in Korea have continued to rise as oil prices hit a seven-year high amid the global economic recovery, data showed Monday.

The average gasoline price nationwide stood at 1,724.7 won ($1.45) per liter Monday, marking the highest since December 2014, according to the data compiled by the state-run Korea National Oil Corporation.

The gas price in Seoul topped the 1,800 won-level per liter in the day, the data showed.

Market watchers said the gas prices may climb further as global oil prices are on the rise due to revived demand amid the global recovery from the pandemic. The Korean currency's weakness against the U.S. dollar also raised import bills of oil products.

Prices of Dubai crude, Korea's benchmark, reached a near three-year high of $82.28 a barrel last week, up from an average of $72.63 in September.

"Oil prices could stay at higher levels for a while as the global economic recovery is expected to further boost demand, though any drastic surge would be unlikely," analyst Shim Soo-bin of Kiwoom Securities said.

There is a growing call for the government to lower fuel taxes to ease the burden of businesses and ordinary citizens.

In November 2018, the government decided to temporarily cut fuel taxes, when gas prices advanced to as high as 1,690.3 won.

Yonhap