A board shows that the prices of gasoline and diesel are 2,190 and 2,180 won per liter, respectively, at a gas station in Seoul, June 12. Yonhap

By Lee Kyung-min

The spiking prices of gasoline and diesel are unlikely to break their weeks-long streak of rising, sustained by global oil prices staying elevated due to demand far exceeding supply amid continued geopolitical uncertainties, a limited increase in output by oil-producing countries and a recovery in spending, market watchers said, Sunday.

Local fuel prices are expected to climb further since the soaring global key commodity prices will be fully reflected with a time lag of about two or three weeks. Also propping up the upward price trajectory is surging demand ahead of the U.S. summer season and eased COVID-19 lockdowns in parts of China, compounded further by the ongoing Russian invasion of Ukraine.

Drivers will bear the full brunt of the costly fuel prices in the weeks ahead, despite previous government measures of a 30-percent cut in fuel taxes that have been more than offset by high global crude oil prices.

Breaking records every day

Data from Opinet, a fuel prices information service provider operated by the state-run Korea National Oil Corp., showed that the per-liter price of gasoline stood at 2,063.45 won ($1.61), Saturday, up 6.66 won from a day earlier. This price surpassed the previous record high of 2,062.55 won, April 18, 2012.

The price of gasoline first topped the 2,000-won level, March 15, following two months of continual increases from 1,600 won in January. The mid-March figure sank to 1,940 won on May 1 but has since been on a steep rise.

The price of diesel, meanwhile, has been breaking records every day for the past month, after surpassing the previous 14-year high of 1947.75 won, a level last seen on July 16, 2008. The price rose to 2,062.28 won per liter, Saturday, up 7.91 won from the day before.

The Organization of the Petroleum Exporting Countries (OPEC) and ten non-OPEC oil-exporting nations agreed in June to increase supply by about 50 percent through July, but the market remains skeptical because it failed to meet the previous target range.

"The demand for oil will continue to remain strong in the coming months, whereas adequate supply is not a guarantee," Seoul National University economist Lee In-ho said. "Global oil prices will not come down unless the Russia-Ukraine war ― among other global uncertainties ― finds a breakthrough."

Global oil prices hovered around $120 per barrel, a level maintained since early March. Some market watchers say the price could soar further to over $150.