The once dreaded price of diesel fuel has fallen to nearly the same level as gasoline prices.
According to fuel price information site Opinet, as of the 25th, the average prices for gasoline and diesel are 1,566.94 won and 1,651.08 won per liter, respectively, showing a difference of just 84 won. In comparison, last year’s average prices in the second week of November were 1,660 won for gasoline and 1,880 won for diesel, demonstrating a significant narrowing of this gap. While gasoline prices dropped by about 40 won, diesel prices have decreased by over 200 won.
In response, the S-Oil public relations team stated, “This is due to a reduction in the extent of the fuel tax cut that was temporarily applied to gasoline.”
Last year, due to rising international oil prices, the government implemented a 37% reduction in fuel taxes for gasoline and diesel. Starting this year, the tax reduction for gasoline has been adjusted from 37% to 25%, resulting in the prices of gasoline and diesel becoming more similar after previously showing a difference of up to 300 won by the end of last year.
S-Oil explained, “In the second half of the year, the ongoing lockdowns in China due to COVID-19 reduced China’s oil demand, contributing to a greater decline in diesel prices.”
By Lee Sang-jin daedusj@autodiary.kr