Gas prices fall for 9th consecutive week, but pace slows amid US-Iran tensions

Gas prices at filling stations across South Korea fell for a ninth consecutive week, though the pace of decline slowed sharply as renewed Middle East tensions stoked fresh anxiety in energy markets.

According to Opinet, the oil price information system run by the Korea National Oil Corp., the national average retail price of gasoline during the third week of July (July 12–16) fell 15.5 won per liter from the previous week to 1,877.5 won.

The drop was a fraction of the 59.1-won-per-liter decline recorded in the second week of July, signaling a significant slowdown in the downward trend.

Jeju posted the highest regional price, falling 12.0 won to 1,914.8 won per liter, while Daegu recorded the lowest at 1,850.1 won, down 14.3 won.

Among brands, GS Caltex stations were the most expensive at 1,881.6 won per liter, while budget "alddeum" stations were the cheapest at 1,870.5 won.

The national average retail price of diesel fell 17.7 won from the previous week to 1,862.5 won per liter.

That compared with a 62.3-won drop in the second week of July, again reflecting a sharp narrowing of the decline.

International oil prices rose this week as armed conflict between the United States and Iran over control of the Strait of Hormuz continued.

Dubai crude, the benchmark for South Korea's oil imports, rose $9.50 per barrel from the previous week to $77.60.

International gasoline prices climbed $9.30 to $104.20 per barrel, while international diesel prices jumped $22.70 to $144.30.

Changes in international oil prices typically take two to three weeks to feed through to domestic pump prices.

With global oil prices turning higher again, the government is set to announce its eighth round of petroleum price caps next week.

Earlier, the government applied its seventh petroleum price cap from midnight on June 27, cutting prices by 150 won per liter — setting gasoline at 1,784 won, diesel at 1,773 won and kerosene at 1,380 won per liter.