The average gasoline price in Seoul recorded 2,043.55 won per liter, up 23.33 won from the previous day as of 3 pm on the 12th.
It is the first time in 8 years and 6 months since September 2013 that the average price of gasoline in Seoul exceeded 2,000 won.
Gasoline price, which fell to 1,687 won at the beginning of this year due to the government's fuel tax cut measures, rose rapidly following the rise in international oil prices.
The national average price is also similar, and as of 3 pm on the 12th, it was 1961.24 won per liter, up 22.27 won from the previous day.
If this trend continues, the national average gasoline price is expected to exceed 2,000 won within a few days.
As the price of oil, which is directly related to the lives of ordinary people, has risen sharply, the government is considering extending the fuel tax cut and further increasing the current 20% cut.
All fuel taxes? duty + VAT
The price of gasoline at gas stations that we come across is determined by combining the cost of importing crude oil, duties imposed on it, various taxes on gasoline, and finally, the margins of refineries and gas stations.
These various items are combined to determine the price of oil. If so, what percentage of the gasoline price is tax?
As of the first week of March, the average gasoline price at gas stations nationwide is 1,764 won per liter, and the tax included in this amount is 798 won including customs duties, fuel tax, and VAT.
That's a whopping 45% of the final sale price of gasoline.
Next, how will international oil prices and domestic oil prices be linked?
According to the oil refining industry, it usually takes 2-3 weeks for crude oil to be imported from overseas markets, refined and sent to gas stations across the country.
So, there is a time lag of 2-3 weeks for international oil price fluctuations to be reflected in actual oil prices.
The price of Dubai oil, which is the standard for domestic imported crude oil, fell by 12.53 dollars from 127.86 dollars per barrel on the 9th to 115.33 dollars in one day, but it is for this reason that domestic oil prices are still rising today (12th).
Are gas prices fast when rising and slow when falling?
But still, doubts remain.
When the international oil price rises, the domestic gasoline price rises immediately, but when the international oil price goes down, this is not the case.
The oil refining industry cites the characteristics of the gasoline distribution structure as well as the fact that consumers are relatively more sensitive to price increases than decreases.
The explanation is that it is related to the consumption patterns of consumers by saying that the time period during which gas station inventory is processed changes when the price rises and when the price falls.
In other words, when the price goes up, people turn to the gas station to get gas even a little cheaper.
Naturally, gas stations will run out of stock quickly, and gas stations will be supplied with higher-priced oil more quickly.
On the other hand, when the price goes down, we tend to find a gas station as late as possible, thinking, 'If it goes down, we should put it in'.
That way, expensive gas station stocks will last longer, and consumers will feel that the price of gas is not going down.
However, even taking this into account, some point out that the rise in domestic oil prices is excessive compared to international oil prices.
When a civic group analyzed the change in oil prices for four months after the government's fuel tax cut in November last year, the 164 won fuel tax cut was larger than the 88 won increase in the international oil price, so the domestic gasoline price should have been cut by 76 won per liter, but it was about 100 won. That is, it has risen.
In response, the industry said that the time lag reflected in domestic prices is not constant, so results may vary depending on which point in time the comparison is made.
In the short term, it may seem inconsistent, but over the long term, the explanation is that this is not the case.