Fuel Prices Korea, South

From energypedia

Part of: GIZ International Fuel Price database

Fuel Pricing Policies

Local Currency: KRW
Exchange Rate: 1130.56

Last Update: 2011/05/01

South Korea imposes high taxes on fuels, reaching the European level of fuel taxes.

In April 2011, the South Korean government published plans to lower fuel taxes, as soon as the crude price exceeds 130 US$/barrel (this price reached 116 US$ in April 2011). Also, the government tries to bring more retailers into the downstream sector, to increase market pressure on the four main refining companies, to which most retailers are affiliated (→App. A2).

President Lee gave a statement in January 2011, by which he somehow blamed the major refinery companies for the high prices. Comparing the crude and retail prices in 2008 and early 2011 led to the assumption, that major refinery companies should lower their disproportionate high revenues (see →App. A3). However, the idea of installing fixed, regulated fuel prices is rejected by the government.

The official website http://www.kesis.net (Korea Energy Statistics Information System) offers comprehensive fuel price monitoring. Official information regarding the fuel price composition / fuel taxation is not available online, hints welcome!

Fuel Prices and Trends

Gasoline 95 Octane Diesel
in USD*

in Local Currency

* benchmark lines: green=US price; grey=price in Spain; red=price of Crude Oil

Source: http://www.kesis.net

Fuel Price Composition

Price composition for one litre of Gasoline 95 Octane as of 2011/01/01.

GIZ IFP2012 Korea, South.png

Approx. values

Total Taxes and Duties includes: 3% import duty on crude imports, 10% VAT on crude imports, further VAT on refined oil products, environmental protection tax, education tax (→App. A1; shares unknown, hints welcome).

Source: own calculations based on http://www.kesis.net, internet articles (see →App.A3) and http://www.eia.doe.gov (for crude oil price on Dubai spot market).

At a Glance

Transparency of
Price Composition
Transparency of Pricing
Mechanism / Monitoring
IFPDB matrix background.png
IFPDB matrix point.png
IFPDB trafficlight yellow.png IFPDB trafficlight explanation.png IFPDB trafficlight green.png

Official and detailed information on fuel taxation missing, hints welcome!

Sources to the Public

Type of Information Web-Link / Source
Other Information http://www.koreatimes.co.kr/www/common/printpreview.asp?categoryCode=202&newsIdx=79765 (A3)
Other Information http://online.wsj.com/article/SB10001424052748703806304576245832442095892.html (A4)
Other Information http://www.mb.com.ph/articles/309281/s-koreas-oilrelated-tax-revenues-top-27-trillion-won (A1)
Other Information http://english.yonhapnews.co.kr/business/2011/04/12/30/0501000000AEN20110412011000320F.HTML (A2)
Pump prices and margins http://www.kesis.net/flexapp/KesisFlexApp.jsp
Pump prices and margins http://www.knoc.co.kr/


Please find more information on GIZ International Fuel Price Database and http://www.giz.de/fuelprices

This is a living document. If you have any comments or suggestions, please feel free to contact us: Armin.Wagner@giz.de