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Money Today Sejong = Reporter Yoo Jae-hee | 2023.07.30 13:16

(Seoul = News 1) Reporter Jang Soo-young = Citizens are filling up at a gas station in Seoul on the 21st. With the recent rise in international oil prices, domestic gasoline prices rose for two weeks in a row and diesel for three weeks in a row. 2023.7.21/News1 Copyright (C) News1. All rights reserved. Unauthorized copying and redistribution prohibited. Domestic oil prices have risen for three weeks in a row. This is because international oil prices have risen above $80 per barrel. This is because demand has grown due to global growth prospects amid crude oil production cuts. There is also a possibility that the average gasoline price at gas stations nationwide will break through the 1,700 won per liter mark in about 10 months.

According to Opinet, a petroleum information service on the 30th, the average price of gasoline at gas stations across the country was 1622.32 won per liter, and the price of diesel was 1433.88 won per liter.

Oil prices are skyrocketing every day. Until last week, oil prices showed an upward trend for three weeks in a row. The average selling price of gasoline at gas stations nationwide for the fourth week of July (23-27) was 1599.3 won per liter, up 15.7 won from the previous week. Diesel sales price was 1411.8 won, up 16.9 won from the previous week.

The world’s three major international oil prices all surpassed $80 per barrel. According to the New York Mercantile Exchange, as of the 28th (local time), West Texas Intermediate (WTI) finished trading at $80.58, Dubai Crude at $85, and Brent Crude at $84.41.

The rise in oil prices is attributable to a combination of supply shortages caused by production cuts by the Organization of Petroleum Exporting Countries (OPEC) and OPEC+, a consultative body of major non-OPEC oil producers such as Russia, and strong demand due to global growth such as China. In addition to this, the decrease in US oil inventories and the concentration of airstrikes by Russia on Ukrainian export ports also had an impact.

In particular, the price of Dubai oil, Korea’s main import, soared by 20% in about two months from the previous lowest point ($70.94 on May 31). The upward trend in international oil prices is expected to continue for some time. Experts predicted that optimism about the global economy and the prospect that the central bank’s interest rate hike is coming to an end will push oil prices further.

Increases in international oil prices are usually reflected in domestic petroleum prices with a lag of two to three weeks. Therefore, some predict that the average gasoline price at gas stations nationwide will soon exceed the 1,700 won per liter mark. The price of gasoline in the 1,700 won range is the first since September 27 last year (1,705.43 won). Prices in Seoul (1,712 won) and Jeju (1,705 won) have already exceeded the 1,700 won mark.

The high price of oil is expected to act as a variable in the government’s oil tax cut policy (25% for gasoline, 37% for diesel/LPG butane), which will be applied until next month. The government planned to gradually reduce the amount of fuel tax cuts from September, but uncertainty grew.

If the oil tax cut is stopped immediately, gasoline will rise by 205 won per liter and diesel by 212 won. Gasoline prices will rise to 1,900 won per liter, and diesel prices will rise to around 1,600 won per liter.

An official from the Ministry of Strategy and Finance said, “The oil tax cut policy will prioritize price conditions such as international oil prices.”

[저작권자 @머니투데이, 무단전재 및 재배포 금지]

2023-07-30 04:16:03
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