Diesel, gasoline prices top 2,000 won amid tight supply

A board displaying fuel prices is seen at a gas station in Seoul, May 25.

The price of diesel and gasoline in Korea both climbed to over 2,000 won ($1.58) per liter Thursday on a continued tight global supply, industry data showed.

The average retail price of diesel fuel had risen 0.88 won to 2,003.56 won per liter as of 2:30 p.m., according to Opinet, a website operated by state-run Korea National Oil (KNO).

Diesel prices have hovered in the 2,000 won range since they surpassed that level for the first time Tuesday, about two weeks after they outstripped the price of gasoline for the first time in 14 years. In Korea, diesel is normally cheaper than gasoline.

The average gas price had also bounced back to 2,001.01 won per liter as of the same time Thursday, up 2.42 won from the previous day.

The gasoline price hit the 2,000 won level March 15 for the first time in more than nine years. It fell below that level in April before bouncing back again.

"International crude prices continue to fluctuate, and unless the supply-demand conditions improve, price hikes will likely continue for some time," an official at the Korea Petroleum Association said.

The consumption of gasoline and diesel also sank 18.3 percent to a combined 17.4 million barrels in April from a year earlier due to high international crude prices, according to the data from the KNO.

Last week, the finance ministry said it plans to provide more subsidies to help ease the burden on cargo truck and taxi drivers suffering from rising fuel costs. (Yonhap)

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