SEOUL — Domestic gasoline and diesel retail prices in South Korea have declined for the fourth consecutive week, reflecting a downward shift in global crude markets spurred by renewed hopes for a peace agreement between the United States and Iran. At the same time, the South Korean government has decided to maintain its stringent price cap on petroleum products, further anchoring domestic fuel prices amid prolonged market volatility.

According to data released on June 13 by Opinet, the oil price information service operated by the state-run Korea National Oil Corporation (KNOC), the average retail price of gasoline at gas stations nationwide stood at 2,009.9 won per liter for the second week of June (covering June 7 to 11). This represents a slight decrease of 0.5 won from the previous week.

Regional price disparities remained evident across the country. Seoul, consistently the most expensive region in South Korea for vehicle fuel, saw its average gasoline price tick up by 0.7 won to reach 2,051.5 won per liter. Conversely, Daegu recorded the lowest average gasoline price in the country, dropping 1.4 won to settle at 1,990.6 won per liter.

By service station brand, SK Energy outlets posted the highest average price at 2,013.8 won per liter, while thrift-focused "Alttel" (budget) gas stations offered the lowest prices, averaging 1,995.9 won per liter. Meanwhile, diesel prices followed a similar downward trajectory, falling by 0.3 won compared to the previous week to average 2,004.8 won per liter, maintaining a parallel downward trend alongside gasoline.

The global oil market experienced significant volatility over the past week due to shifting geopolitical risks. Early in the week, crude prices surged following direct military skirmishes between U.S. and Iranian forces. However, these gains were entirely erased later in the week after U.S. President Donald Trump publicly hinted at the strong possibility of a formal peace agreement or end-of-war accord between the two adversarial nations. This diplomatic signal triggered a sharp sell-off, causing international benchmarks to close significantly lower.

Dubai crude, South Korea’s primary import benchmark, plunged by $4.50 per barrel compared to the preceding week, closing at $89.70 per barrel. In contrast, international gasoline prices edged up by $1.30 to reach $117.50 per barrel, while international automotive diesel prices tumbled by $7.90 to finish at $140.10 per barrel. Market experts note that fluctuations in international oil prices typically take approximately two to three weeks to be fully reflected at domestic pumps across South Korea.

In tandem with shifting international dynamics, the South Korean government is maintaining its aggressive regulatory intervention to curb consumer inflation. The Ministry of Economy and Finance announced that the 6th emergency price ceiling regulation on petroleum products, which was initially implemented on May 22, will be extended without any upward adjustments.

Under this extended price control decree, the maximum legal retail prices will remain frozen at 1,934 won per liter for gasoline, 1,923 won per liter for diesel, and 1,530 won per liter for kerosene. These caps are identical to the levels enforced during the second through fifth regulatory periods, underscoring the government's firm commitment to shielding households and businesses from excessive energy costs.

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