Gasoline price rises to highest level in more than 8 years

Economy

Published: 13 Mar. 2022, 15:13 Updated: 13 Mar. 2022, 19:13

Gasoline price rises to highest level in more than 8 years

Gasoline is sold at 2,850 won ($2.28) at a gas station in Seoul on Sunday. The average price of gasoline per liter in Seoul hit 2,055 won on Sunday afternoon and 1,976 won nationwide, according to Opinet, the highest in eight years and six months. [YONHAP]

Gasoline prices continued to climb over the weekend, hitting another recent high as Russia's invasion of Ukraine and the related sanctions drive up the price of crude oil.

The average price of gasoline per liter in Seoul hit 2,055 won ($1.66) on Sunday evening and 1,976 won nationwide, according to Opinet, a website with oil price information from the Korea National Oil Corporation. This was the highest in eight years and six months.

Seoul's average per-liter gas price broke 2,000 won for the first time since September 2013 on Friday, rising to 2,020 won a liter. It went up by 25 won on Saturday.

The highest prices were in Jeju, with gasoline costing 2,088 won per liter as of Sunday afternoon. The lowest were in Gwangju, at 1,945 won per liter.

Diesel in Seoul hit 1,967 won per liter Sunday, up 18 won from the previous day, and 1,874 won nationwide, up 17 won compared to Saturday.

Domestic gas prices have been rising for eight consecutive weeks, with the graph steepening following the commencement of hostilities in Europe.

The United States on Tuesday announced a ban on Russian oil and other energy imports in retaliation for the invasion of Ukraine, leading to higher oil prices globally.

Korea's currency has been weakening against the dollar, making the rise more pronounced as oil is denominated in dollars. On Friday, the local currency closed at 1,237 won against the dollar, up 9 won from the previous session.

The government has cut taxes to take the edge off the increases.

On Nov. 12, the government cut the fuel tax by 20 percent, reducing the cost by about 164 won per liter — gas is taxed at 820 won per liter.

The government has extended the tax cut to the end of July from the previous April end date, as prices are expected to keep climbing.

Finance Minister Hong Nam-ki on March 4 suggested that he is reviewing a plan to increase the fuel tax cut to 30 percent if the situation continues and crude oil prices rise to around $150 to $160 a barrel.

Crude oil traded at $122.8 per barrel from March 7 to 11, up $16.6 from the previous week.

BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]