Lee Hyo-jin covers the Bank of Korea, the banking industry and broader financial news. Her previous beats include foreign affairs, North Korea and general reporting on Korean society.
Commuters turn to public transit as fuel prices soar amid Iran conflict
Gwanghwamun Station in Seoul is crowded with commuters during rush hour, Monday. Yonhap
By Lee Hyo-jin
Lim Joo-young, an office worker in her 30s who commutes from Seongnam, Gyeonggi Province, to Seoul's Seocho District, recently switched from driving to taking the subway as fuel costs climb.
"I used to drive to work, so taking the subway during the rush hour has been uncomfortable," she said. "But fuel costs have become too high, so I plan to keep taking the subway for now. I used to fill up about three times a month, but I'm trying to cut that down to once or twice."
Another office worker, surnamed Park, who lives in Yangcheon District in Seoul, has also began cutting back on driving. Though her workplace is just a 20-minute drive away, she now rides a bus that takes about an hour.
"I've started taking the bus twice a week. I'm trying to rely less on my car overall," Park said. "I'm also cutting back on longer drives to shopping malls on the weekend to save on fuel."
Data shows that more commuters are shifting to public transportation as high fuel prices, driven by the escalating conflict in the Middle East, weigh on household budgets.
According to Seoul Metro on Wednesday, average daily ridership on subway Lines 1 through 8 rose by about 320,000 to 10.66 million between March 10 and 12, compared with 10.34 million from Feb. 24 to 26, before the Feb. 28 outbreak of the Iran conflict.
Over the same period, the average daily traffic volume in Seoul edged down, from 8.19 million vehicles to around 8.12 million.
The trend comes as rising fuel prices have become an increasing burden on households. Gasoline prices, which hovered in the 1,600-won range per liter before the Iran crisis, climbed to around 2,000 won at their peak.
According to Korea National Oil Corp.'s Opinet website, the nationwide average gasoline price stood at 1,825.58 won per liter as of 10 a.m. Wednesday. The price has risen steadily from 1,692.58 won on Feb. 27, a day before the outbreak of the Middle East conflict.
A gas station in Seoul shows gasoline priced at 1,859 won per liter, Tuesday. Yonhap
In response, the government moved to contain costs by introducing a temporary price cap system starting March 12, the first time such measures have been enacted in three decades.
The policy sets a ceiling on the prices at which oil refiners can supply fuel to gas stations and distributors, but fuel prices at gas stations have been dropping at a slower pace than expected.
With the Middle East crisis showing signs of becoming a prolonged conflict, officials are also weighing additional measures to curb fuel demand.
During a Cabinet meeting Tuesday, President Lee Jae Myung raised the possibility of restricting vehicle use based on license plate numbers.
Such measures typically limit when cars can be driven based on the last digit of their license plates. Under a so-called "five-day rotation" system, vehicles are barred from the roads one weekday each week, while a stricter "10-day rotation" would impose broader restrictions.
The measures would likely be introduced first for public institutions and could be expanded to the private sector.