Gas Prices in Seoul Surge to 1,609 Won Per Liter

Domestic gas and diesel prices are skyrocketing due to steep increase of international oil prices. The Early Warning System (EWS) index for oil prices has now leveled up from “caution” to “vigilance” by the Korean government and the Korea National Oil Corporation (KNSO). This suggests that the government may execute mandatory policies for energy conservation like appointing a specific day of the week to van driving.

According to the KNSO, oil prices in Seoul are valued at 1,602.88 won per liter as of the second week of May (between May 7 and 11), breaking the 1,600 won mark for the first time in history. During the third week of this month (May 14-18), prices rose 6.66 won to 1,609.54, increasing for 15 weeks in a row.

Gas price nationwide averaged 1,538.20 per liter, rising 5.22 won compared to the previous week. This is the 14th consecutive week of the increase. Diesel also soared to a record high of 1,238.23 won in eight months since the 1,245.79 posted during the fourth week of last September.

Dubai oil, Korea’s main source of crude oil, was traded at $66.13 on May 18, up $1.06 from the previous day. This is the highest level since the price of $66.27 recorded on September 1, 2006.

The analysis by some market observers that the supply of oil will lag behind demand because some major oil companies have reduced their refinery operations was the main reason behind the price spike.