Seoul: Retail fuel prices at gas stations have been steadily dropping, but at a slower pace than expected, since the government introduced a temporary price cap system last week, the industry ministry said Monday, vowing continued efforts to ease energy supply woes due to the Middle East crisis.
According to Yonhap News Agency, the average gasoline price at gas stations nationwide came to 1,840.1 won (US$1.23) per liter as of Sunday, down 58.7 won from Thursday, a day before the price ceiling system took effect, according to data compiled by the Ministry of Trade, Industry and Resources. The average retail diesel price dropped 77.8 won to 1,841.2 won per liter over the same period.
The price decrease followed the government's implementation of a price cap system on products oil refineries supply to gas stations. This system was introduced to help ease cost burdens related to soaring fuel prices, which have been exacerbated by supply concerns due to the conflict in the Middle East. The initial price ceiling was set at 1,724 won per liter for regular gasoline, 1,713 won per liter for diesel, and 1,320 won per liter for lamp oil. The threshold will be readjusted every two weeks to reflect changes in international oil prices.
In a meeting with industry officials Monday, Industry Minister Kim Jung-kwan noted that retail prices of fuel products are falling at a slower-than-expected pace. He emphasized that once gas stations deplete their existing inventories, purchased before the price cap system, retail prices should decrease further. Kim assured that the government will mobilize "all available resources" to ensure consumers feel the effects of the maximum price system at gas stations, promising continued monitoring of oil prices and on-site inspections to address any unfair market practices.
Additionally, the government plans to provide incentives to consumer-friendly gas stations that offer fair prices. The number of gas stations nationwide that reduced their gasoline prices from a day earlier stood at 1,633 on Sunday, significantly dropping from 4,216 on Saturday, as reported by the ministry.