With the recent surge in gasoline prices at domestic gas stations, it is predicted that gasoline consumer prices will rise further for the time being due to the continued rise in international oil prices. Accordingly, it is pointed out that consumers need to respond wisely, such as finding cheap gas stations through oil price information sites.
According to the Korea National Oil Corporation on the 13th, the average price of gasoline nationwide on the 12th was 1438.98 won per liter, which rose by 9.25% in two months, rising every day since November 18th (1317.12 won) last year. Gasoline prices in Seoul, which already surpassed the 1,500 won mark last week, rose to 1514.58 won per liter on the same day.
The rate of increase is also on the rise, rising by 20-30 won every week. Weekly average gasoline prices rose by 1.4 won in the fourth week of last November (1318.8 won), and after a reversal, from the first week of December, 8.2 won, 12.2 won, 18.6 won, 31.7 won, and 24.0 won have risen every week to 1400 per liter in one month. It broke the circle line.
This is due to the rise in international oil prices, which has continued since the end of last year. Dubai oil, which is mainly imported from Korea, takes time to transport and refining to Korea, and there is a time difference of 2-3 weeks from the purchase of crude oil to being reflected in the domestic consumer sales price. Dubai oil, which was $36.30 per barrel on November 2nd last year, rose 52.4% to $55.33 per barrel on the 11th. The reason for the rise in gasoline prices at domestic gas stations has also arisen. The reason why international oil prices soared in such a short period is due to increased expectations for global economic recovery. With the recent development of the Corona 19 vaccine, the expectation that’the demand for oil will increase in the future’ has become dominant in the international crude oil trading market. In the international crude oil trading market, this price surge is caused only by expectations or concerns, regardless of the actual recovery in demand for petroleum products. In January of last year, when the commander of the Iranian Revolutionary Guard was murdered, the price of Dubai oil rose nearly two dollars per barrel just one day after the incident, due to concerns that “the Strait of Hormuz will be blocked and it will be difficult to buy crude oil.” Here, OPEC+ (oil) The decision to cut production by the Organization of Exporting Countries and the coalition of 10 major oil producing countries also had an impact. In Saudi Arabia, the daily average of 1 million barrels is voluntarily subtracted. In this case, in the international crude oil trading market, concerns about a shortage of supply will cause prices to rise. In the first place, gasoline prices should rise further, but some interpret that it is at the current level thanks to the lower exchange rate. Domestic petroleum product prices are based on the price of oil traded in the Singapore spot market, which is set in dollars. Under the current exchange rate decline, the price of imported crude oil is lowered, which is a factor in the domestic price decline. The industry estimates that if there was no exchange rate effect, the current gasoline price would have reached the high end of 1400 won.
Considering this trend, the prospect that domestic gasoline prices will rise further is predominant. International oil prices are on the rise every day, breaking their highs in 11 months since the outbreak of Corona 19 in February of last year, but the won-dollar exchange rate, which had been declining this year, is stabilizing at the current level, moving sideways from around 1,100 won.
An official from the Korea Petroleum Association said, “The current gasoline price reflects the situation in December last year when international oil prices continued to rise.” “As international oil prices continue to rise, domestic gasoline prices will also rise in the next two to three weeks.” .
(Seoul = News 1)
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