Market Update: Lee calls for close monitoring of gas stations as fuel price cap takes effect – Full Analysis

 

Domestic gasoline prices fell for a third consecutive day Thursday, as the government’s fuel price cap eased pressure from the Iran war’s effects on global oil prices. President Lee Jae Myung called for close monitoring of local gas stations to ensure compliance with the cap.

 

According to Opinet, the oil price information service run by Korea National Oil Corporation, the nationwide average price of regular gasoline stood at 1,883.79 won per liter ($4.79 per gallon) as of 9 a.m. Friday, down 14.99 won from the previous day.

 


 

Regular gasoline prices peaked at 1,906.95 won per liter on Tuesday and have continued to fall since. The average price in Seoul dropped 20.66 won to 1,906.4 won per liter.

 

The nationwide average price of diesel fell 21.08 won to 1,897.89 won per liter on Friday. It was the first time the diesel average dropped into the 1,800-won range since March 6. The average diesel price in Seoul fell 30.64 won to 1,905.53 won per liter on Friday.

 

The government set a price cap on refinery supply prices through a maximum oil price system that took effect at midnight Thursday. The first price caps were set at 1,724 won per liter for regular gasoline, 1,713 won per liter for automotive diesel and 1,320 won per liter for kerosene used indoors. 

 

“Public monitoring and participation are needed to prevent some companies from profiteering during this period of instability or taking unfair profits,” Lee said in an X post on Friday. “If you find gas stations violating the [oil price cap] system, please report the cases to me without delay.”

 

It marks the first time since 1997 that Korea has enforced a price ceiling system under a provision in the Petroleum Business Act, which allows the industry minister to set a maximum sales price when oil prices fluctuate sharply and threaten economic stability.

BY YOON SO-YEON, YONHAP [[email protected]]