Gasoline and diesel prices rose moderately in South Korea on Sunday as the government considers adopting a price cap system amid concerns over rising energy prices due to the escalating Middle East conflict. According to the Korea National Oil Corp., the nationwide average gasoline price reached 1,893.3 won ($1.27) per liter, up 3.9 won from the previous day, while diesel increased 4.8 won to 1,915.4 won per liter.
The escalation of conflict in the Middle East, including U.S.-Israeli strikes on Iran and Tehran's retaliatory attacks, has driven up global crude oil prices, which are now immediately reflected in South Korea's domestic fuel prices. In response, the government has begun reviewing the adoption of a price cap system to address concerns over rising energy costs.
Data from the Korea National Oil Corp. shows that on March 8, 2026, the nationwide average price for gasoline stood at 1,893.3 won ($1.27) per liter, an increase of 3.9 won from the day before. Diesel prices averaged 1,915.4 won per liter, up 4.8 won. In Seoul, gasoline reached 1,944.7 won per liter (up 3 won), and diesel hit 1,968.2 won (up 4.9 won). These modest gains contrast with recent daily jumps of tens of won, indicating that the government's considerations may be tempering the upward trend.
South Korea, heavily reliant on energy imports, remains vulnerable to such external shocks, which frequently contribute to inflation. Sources indicate the review of the price cap system—potentially the first in 30 years—stems from the rapid pass-through of global price surges to local pumps, though no final decision has been announced.
