South Korea Freezes Highway Fuel Prices During Chuseok Holiday
The government reduces gasoline and diesel costs by 100 won per liter at 226 highway stations during the Chuseok period.
South Korea will lower gasoline and diesel prices by 100 won per liter at 226 highway stations during the Chuseok holiday. The discount applies to stations operated by the Korea Expressway Corporation from September 24 to 27. This move targets rising fuel costs as international oil markets fluctuate.
The government extends fuel tax cuts for another two months. The tax reduction remains at 15 percent for gasoline and 25 percent for diesel and LPG. These measures aim to stabilize energy supplies amid regional uncertainty.
Wholesale price caps remain unchanged
The tenth fuel price cap stays at the same level as the previous round. Maximum wholesale prices are fixed at 1,784 won per liter for gasoline. Diesel is capped at 1,773 won per liter and kerosene at 1,380 won per liter.
This marks the third consecutive round where the cap has not changed. The system has continued beyond the initial six-month timeline. Officials cite unstable international oil prices as the reason for the extension.
Industry groups criticize the policy
The Korea Oil Station Association opposes the highway-specific discount. The group argues that the measure distorts price competition. It claims privately owned stations will lose customers and face closure.
Private operators report declining profitability due to high oil prices and existing caps. They state that selective discounts at government-run stations are unfair. The government maintains that these steps are necessary for consumer relief.
Global oil prices surge
Dubai crude rose above 100 dollars per barrel on September 2. The price reached 128 dollars per barrel by Wednesday. An attack on a Saudi Arabia pipeline contributed to the supply concerns.
Domestic gasoline prices have fallen for 18 consecutive weeks. The nationwide average stood at 1,858.62 won per liter in the third week of September. GN auto markets/energy data shows this is a drop from the May peak of 2,011.75 won. Officials estimate the cap saves consumers over 100 won per liter on gasoline.
