Gasoline and diesel prices displayed at a gas station in Seoul, Sunday, are hiked to over 2,200 won per liter, the highest level since Russia began its full-fledged invasion of Ukraine in 2022. Yonhap
Korea's major oil refiners are moving to cut supply prices of oil to contribute to the country’s efforts to curb surging prices at gas stations nationwide, while the U.S.-Israel conflict with Iran destabilizes trade.
The development came as President Lee Jae Myung last week warned against possible collusion to fix oil prices by refiners and gas station operators here, as the country's gasoline and diesel prices rose sharper than other comparable markets.
Refiners have either adjusted their supply prices or announced they will cooperate with the government and rest of the domestic oil industry to stabilize prices at domestic gas stations.
HD Hyundai said Sunday that its refiner subsidiary, HD Hyundai Oilbank, lowered its supply price for gas stations here. The company, however, declined to reveal any specific numbers, only saying the price has been reduced “by a little.”
SK Innovation said it has not yet decided to cut its supply price but will cooperate with the government’s oil price stabilization policies as much as possible. S-Oil also said it is currently making efforts to support the government’s oil price initiative, but declined to confirm whether it has lowered its supply price for gas stations.
The companies’ cooperative stances with the government came after the country’s three major private oil groups — Korea Petroleum Association, Korea Oil Distribution Association and Korea Oil Station Association — released a joint statement Friday agreeing for cooperation to prevent surging global crude oil prices from spiking prices at the pump.
Vehicles are lined up at a gas station in Incheon, Saturday, in an apparent effort to find cheaper gas amid surging prices. Yonhap
The country last week saw fuel prices rise at un unusually steep pace following the crisis that was sparked by the Middle East conflict. It raised concerns over possible collusion by gas stations and prompted renewed calls for stronger government intervention.
According to Opinet, a fuel price information system operated by the state-run Korea National Oil Corp., average gasoline prices across the nation on Saturday reached 1,894.86 won ($1.28) per liter, up nearly 10 percent from 1,723 won on March 3. Diesel prices climbed even more sharply, rising 17.24 percent over the same period to reach 1,917.34 won per liter on Sunday.
Source: Korea Times News
