Gasoline Prices Continue to Soar
By Jane Han
Staff Reporter
Driving a mid-size Hyundai Sonata, Kim Myeong-jin forgot when she last said ``fill it up please'' at the pump. But she has no plans on doing so soon either because, before the 1,600-won mark gas price even had time to sink in, she's now looking at new highs hovering around 1,700 won to 1,800 won.
Amid the price jump in gas stations nationwide, the Korea Oil Station Association (KOSA) said Tuesday that it recognized certain hot spots with outstanding figures.
Yeouido, Seocho and Gangnam areas are currently seeing the highest with Kyung-il gas station in Yeouido topping off the price list at 1,779 won per liter as of Tuesday afternoon.
This location has been repeatedly noted for servicing customers at the most expensive rate because of its central spot that calls for high rent.
``Price differences are inevitable among stations because each business has its own circumstances that must be accommodated for,'' said the owner of the Yoido-area Gwang-jang gas station. ``And rent price is one of the most decisive factors.''
Consumers often think that business owners are the ones profiting from soaring oil prices, he added, but that's a misunderstanding.
``The margin is the same and because our area has more expensive prices, we're the ones at a disadvantage compared to other cheaper areas,'' he said.
While filling stations in the Gangnam and Yeoksam areas are charging somewhere around 1,700 won to 1,720 won, cities in provincial areas are maintaining a comparatively moderate range of 1,480 won to 1,490 won.
With the price gap between areas, an increasing number of motorists are going on a weekend search for a deal on cheap gas, said KOSA.
But for those without the time to do so like Kim, resort to expensive but convenient downtown area gas stations.
``There has been a big jump in stations with prices in the 1,700 won range and along with this we're seeing extremes,'' said a KOSA official. ``Some are doing better business than before while some are crashing.''
According to the oil station association's review of March records covering 11,000 gas stations, average sales have dropped 2.2 percent this year compared to 2006.
Compared to world prices, Korean consumers pay much more for gas. The price in Korea was 1,456 won per liter as of March, much higher than the United States' 693 won or Japan's 1,038 won. The retail price hit 1,600 won as of the end of May.