By Ryu Jin
Staff Reporter
Gasoline prices are soaring again across the country after a brief pause in summer. While the majority of gas stations offer gasoline at around 1,600 won ($1.71) per liter, some are selling the fuel at around 1,750 won.
With international crude oil prices set to renew high records, a number of industry sources expected gasoline prices to exceed 1,600 won in Seoul.
According to service stations in Seoul Wednesday, pump prices in such affluent Seoul areas as Yeouido and Gangnam have almost reached the 1,779-won record of June this year.
Officials from the Korea National Oil Corporation (KNOC), which surveys the average gasoline price of about 980 stations across the country, said that the average price is also showing signs of a rebound after reaching 1,550 won in June.
The benchmark Singapore price, which the South Korean refiners and gas stations refer to before deciding the pump price, soared from $73 a barrel to $79.60 last week due to the rising demand in the countries in the region, such as Indonesia and Vietnam.
Dubai crude, which accounts for most of South Korea’s oil imports, also topped $72.21 per barrel, the highest price ever, despite the OPEC decision to lift oil output modestly.
Pump prices at local gas stations posted much higher due to the country’s peculiar pricing structure. While the ex-refinery price accounts for only 39 percent of the total, some 57 percent is composed of various taxes including mileage and education taxes.
``We are offering gasoline at 1,598 won per liter. But I expect it would be above 1,600 won in a couple of weeks,’’ said a service man at a station in the relatively less affluent Gangbuk area (north of Han River).
``It’s bad news not only for consumers but also for us,’’ he said. ``Operators of gas stations are concerned about the move since sales decrease in tandem with the increase in prices.’’