The South Korean government will keep maximum prices for major petroleum products unchanged for another four weeks, even as international crude prices retreat. From November 14, the ceilings remain at 1,784 won per liter for gasoline, 1,773 won for diesel and 1,380 won for kerosene. This is the fifth consecutive decision to retain the same limits since the government lowered each ceiling by 150 won per liter in late June.
- Gasoline ceiling
- 1,784 won per liter
- Diesel ceiling
- 1,773 won per liter
- Kerosene ceiling
- 1,380 won per liter
- Application period
- Four weeks from November 14
Crude benchmarks have fallen from their October averages. Brent crude declined from an average of $108 per barrel in October to $96 on November 12, while Dubai crude dropped from $111 to $90. The government said both benchmarks nevertheless remained more than $20 per barrel above their June 26 levels, the comparison point used in setting the price ceilings.
Shipping costs offset the retreat in crude benchmarks
Higher shipping costs also weighed against lowering the caps. The tanker freight index for Middle East-to-China routes rose from 295 on June 26 to 1,202 on November 6, more than quadrupling. The industry ministry cited attacks on vessels near the Strait of Hormuz and continuing instability in the Middle East as factors increasing transportation costs alongside elevated crude prices.
The government said maintaining the ceilings would continue to limit pressure on household fuel spending and broader inflation. The Korea Development Institute estimated that between March and October the policy reduced monthly petroleum-product inflation by about 12 percentage points on average and lowered consumer-price inflation by roughly 0.6 percentage points. The Korea Institute for Industrial Economics and Trade also assessed that the increase in domestic gasoline prices had been more limited than in major comparator countries.
Officials plan to continue monitoring conditions in the Middle East, international oil benchmarks and freight rates while operating the price-control system. Any later adjustment will depend not only on recent declines in headline crude prices but also on how far those prices remain above the June reference levels and whether elevated tanker costs ease.