Domestic gasoline prices have surpassed 1,700 won per liter for the first time in five months. According to the Korea National Oil Corporation (Opinet) on the 13th, the average gasoline price at gas stations nationwide was 1,702.3 won per liter, marking an increase of 31.65 won (1.9%) since the beginning of the new year. This is the first time prices have exceeded 1,700 won per liter since August 10 last year (1,700.22 won).
In Seoul, where gasoline prices are the highest, prices have jumped over 4% in about a month to reach 1,770.17 won per liter from the early 1,700 won range last month. Diesel prices (national average) have also increased by 4.9% to 1,551.8 won per liter during the same period.
The rise is attributed to the soaring international oil prices from the start of the new year, with substantial influence from the United States. Energy demand has increased due to a cold wave forecast in the eastern U.S., and the Biden administration has imposed sanctions on Russian oil as of the 10th, amplifying the upward trend. As of 4 p.m. on the 13th Korean time, Brent crude was traded at 81.35 dollars per barrel, the highest in over four months. West Texas Intermediate (WTI) has risen by 8.6% this year to around 77.92 dollars. Typically, international oil prices are reflected domestically with a lag of about 2-3 weeks, so the trend of rising fuel prices may continue for the time being.
Starting from the new year, the prices of agricultural and fishery products have also been rising, increasing the cost of ingredients for small restaurant owners and the ‘shopping basket’ burden ahead of the Lunar New Year holiday. According to the Korea Agro-Fisheries & Food Trade Corporation, the average retail price for 10 sheets of dried seaweed was 1,562 won as of the 10th, with the price per sheet increasing more than 50 won from a year ago (100 won).
The average retail price for mackerel, dubbed the “national fish,” (two domestic salted ones) was 6,276 won as of the 10th, which is 37% more expensive than last year. According to Statistics Korea, the overall consumer price index in December last year rose 1.9% year-on-year, but the price increase rate for seafood was much higher at 3.1%. This was also higher than the agricultural product price increase rate of 2.6%.
Cabbage prices, which suffered due to poor harvests from heat waves, are also climbing again. Retail prices were 4,928 won per head as of the 10th, a 55.8% increase from a year ago. Radishes were 3,182 won each, a 76.1% jump from a year ago.
The recent depreciation of the Korean won (rising exchange rates) has also spurred prices for not just ingredients but also crude oil imports. On the 13th, the Korean won traded at 1,470.8 won per dollar at the Seoul foreign exchange market, a decrease of 5.8 won from the previous trading day, returning to the 1,470 won range for the first time in about two weeks since the 30th of last month. In response, the Ministry of Agriculture, Food and Rural Affairs decided to stabilize agricultural product prices by supplying more than 200 tons of reserve stocks of cabbage and other items to the market daily, totaling 11,000 tons.