Gas falls under 2,000 won per liter for 1st time in nearly 2 months

The average gasoline price at Korea's gas stations again fell from a day earlier on Sunday after dropping under the 2,000 won ($1.30) mark for the first time in nearly two months the previous day, industry data showed.

The average gasoline price came to 1,991.1 won per liter ($4.90 per gallon) as of 9 a.m., down 5 won from the previous day's average, according to the data from the Korea National Oil Corp. (KNOC).

It marked the second consecutive day for the average gas price to remain under 2,000 won, after it fell below the threshold for the first time in around two months.

The price of diesel fell to 1,982.3 won per liter, the data showed.

The drop in energy prices comes amid the government's decision to lower the price ceiling on fuel prices to reflect the recent decline in global crude prices.

Under the adjustment, maximum prices for regular gasoline, diesel and kerosene supplied to gas stations by local oil refiners have been lowered by 150 won to 1,784 won, 1,773 won and 1,380 won per liter, respectively, starting Saturday.

Global oil prices are also on the decline, with Dubai Crude falling by 34.3 percent over the past month, from $98 per barrel on May 26 to $64.40 on Thursday.

Market watchers expect it will take around two to three weeks for consumers to fully feel the impact of the price drop, as gas stations are still holding inventories purchased previously at higher prices.

"Given the differences in inventory among gas stations, prices are expected to decline progressively by about 50 won per week over the next two to three weeks," an industry source said.

But it may be difficult for domestic fuel prices to drop to their prewar levels, the official noted, due to the weakening won and a rise in global petroleum product prices.

The average price of gasoline at local gas stations was 1,691.3 won per liter in the fourth week of February, before the onset of the war between the United States and Iran, according to KNOC data.

Yonhap