Gasoline Prices Drop to Historic Low

      September 16, 2014 13:03

      Gasoline prices have fallen to the lowest in three years and eight months. As global oil prices continue to drop, gasoline prices here will likely plunge below W1,800 (US$1=W1,039) per liter within this year.

      According to the Korea National Oil Corporation, the average price of regular gasoline nationwide was W1,816.11 per liter on Monday, the lowest since Jan. 4, 2011.

      It peaked at W2,062.55 on April 18, 2012 and has been hovering above the W1,800 range since October last year.

      Some gas stations in Seoul, Daegu and Gyeonggi Province are already selling gas for less than W1,800, and their number is expected to increase.

      The downward trend is due to falling global oil prices. In the Dubai Mercantile Exchange, crude dropped from US$104 per barrel in January to $96 on Sept. 8.

      Global demand for crude rose by 900,000 barrels a day on average this year, but supply increased by 1.6 million bpd, stabilizing the prices, the Ministry of Trade, Industry and Energy said.

      Supply will continue to exceed demand next year, resulting in a further cut in prices, it added.

      The strong won also put downward pressure on prices here.

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