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South Korean Fuel Prices Fall for 17th Consecutive Week Despite Global Oil Rally
Energy Minerals · Oil Refining/Marketing · yonhap_finance · 2026-09-11
Despite rising global oil prices driven by Middle East tensions, South Korean retail fuel prices have declined for 17 weeks due to government price caps.
What Happened
Domestic Fuel Trends: Average gasoline prices at South Korean gas stations fell by 1.1 KRW per liter to 1,859.1 KRW, marking the 17th straight week of decline. Diesel prices also saw a slight decrease, settling at 1,844.0 KRW per liter, defying the upward pressure from global markets.
Global Oil Market: International oil prices have surged due to concerns over supply disruptions and the potential for a prolonged conflict in the Middle East. The price of Dubai crude rose to 114.7 USD per barrel, while international gasoline and diesel prices also saw significant gains.
Government Price Controls: To mitigate the impact of volatile global energy costs on domestic inflation, the South Korean government continues to enforce a maximum price ceiling on petroleum products. The current caps for gasoline and diesel remain in effect, with the next price review scheduled for the end of the month.
Market Outlook: While changes in international oil prices typically impact domestic retail prices with a two-to-three-week lag, the government's interventionist policy remains the primary factor. Consequently, domestic fuel prices are expected to maintain their current trend, shielded from the full extent of global market volatility.