What is the petrol price in South Korea 2026?

In 2026, South Korean gasoline (휘발유, hwiballo) averages approximately KRW 1,700–1,850 per litre (approximately USD 1.28–1.40/litre or EUR 1.18–1.30/litre at current exchange rates). Diesel (경유, gyeongyou) averages KRW 1,500–1,650/litre. LPG autogas (LPG 충전소) averages KRW 900–1,050/litre — significantly cheaper, reflecting lower excise rates and South Korea's large LPG vehicle fleet. Prices are set by market competition among the major oil companies (SK Energy, GS Caltex, Hyundai Oilbank, S-Oil).

Why does South Korea have so many LPG cars?

South Korea has approximately 2.5–3 million LPG vehicles — one of the world's largest LPG automotive fleets relative to total vehicle population. This is primarily because the Korean government historically restricted LPG vehicle ownership to taxis, disabled drivers, and veterans (as LPG was subsidised and supply was limited), then gradually liberalised access. Taxis in South Korea overwhelmingly use LPG because it costs roughly 50–60% less than petrol per kilometre. The LPG infrastructure built for taxis created a network effect that sustained the market.

Does South Korea produce its own oil?

South Korea produces negligible domestic crude oil (essentially zero commercial production) and imports virtually 100% of its petroleum needs, primarily from the Middle East (Saudi Arabia, UAE, Kuwait, Iraq) and increasingly from the US, Russia (historically), and Kazakhstan. It compensates with world-class downstream capacity: South Korea operates four large integrated refineries (SK Energy's Ulsan, GS Caltex's Yeosu, Hyundai Oilbank's Daesan, and S-Oil's Ulsan) with combined capacity of approximately 3.3 mb/d, making it one of Asia's largest refining hubs and a significant exporter of refined products.

South Korea Fuel Prices 2026: Taxes, LPG Fleet & Refinery Complex

Published 1 July 2026 · Updated 15 October 2026

South Korea is a fascinating case study in energy economics: a country with zero domestic crude production that has built one of the world's most sophisticated downstream petroleum industries. Its four major refineries export significant volumes across Asia. Its 2.5 million LPG vehicles represent a unique policy legacy. And its government has used fuel tax cuts as an anti-inflation tool more aggressively than most OECD countries, deploying temporary excise reductions in 2022–2023 and again in 2025.

For live Korean fuel prices, use the fuel price explorer. For the broader Asian context, see our analysis of Southeast Asia fuel subsidies 2026.

South Korean fuel tax structure

Korean fuel prices consist of several layers under the Transport Energy Environment Tax Act and the Individual Consumption Tax Act:

Component	Petrol (KRW/l)	Diesel (KRW/l)	LPG autogas (KRW/l)
Wholesale (crude + refining)	~640	~650	~430
Transport Energy Tax (교통세)	529	375	—
Individual Consumption Tax	—	—	221
Education Tax (교육세)	79	56	—
Driving Environment Tax (주행세)	138	98	—
VAT (10%)	~165	~150	~95
Retail margin	~90	~90	~70
Approx. total pump price	~1,750	~1,580	~970

The Transport Energy Tax is the primary excise levy on petrol and diesel. The Education Tax (15% of transport tax) and Driving Environment Tax (26% of transport tax) are parasitic taxes applied on top, making Korean fuel taxation notably layered. For excise duty context, see our excise duty glossary entry.

The LPG vehicle fleet: a unique Korean legacy

South Korea has approximately 2.5 million LPG-fuelled vehicles — one of the world's largest fleets outside Turkey and Poland. This is almost entirely a policy-created market:

Taxi sector: The vast majority of Korean taxis run on LPG. At KRW ~970/litre vs KRW ~1,750 for petrol, LPG saves taxi operators approximately 45% on fuel costs — critical for high-mileage commercial use.
Historical restrictions: Until 2000, LPG vehicles were restricted to taxis, disabled persons, veterans, and government vehicles due to supply constraints and subsidy management. Gradual liberalisation expanded access.
LPG network: Korea has approximately 2,200 LPG refuelling stations, predominantly in urban areas co-located with taxi depots.
Transition pressure: The LPG fleet is under pressure from EV adoption. The government's 2030 EV target for taxis is accelerating the transition, with several Seoul taxi companies converting fleets to electric.

For international LPG autogas context, see our LPG autogas guide.

South Korea's refinery complex

Despite producing no crude, South Korea has built world-class refining infrastructure:

Company	Refinery location	Capacity (bpd)	Nelson Complexity
SK Energy	Ulsan	840,000	~9.0 (complex)
GS Caltex	Yeosu	800,000	~9.5
S-Oil	Ulsan (Onsan)	669,000	~8.5
Hyundai Oilbank	Daesan	520,000	~8.0
Total		~2.83 mb/d

Korean refineries are configured as complex facilities (high Nelson Complexity Index) optimised for maximum conversion of heavy sour crude — primarily from the Middle East — into high-value light products (petrol, diesel, jet fuel, naphtha). Korea exports significant volumes of refined products across Asia, making its refiners globally competitive. For refinery complexity context, see our refinery glossary entry.

Pump price trend 2020–2026

Year	Avg petrol (KRW/l)	Avg diesel (KRW/l)	Key driver
2020	1,350	1,170	COVID demand collapse
2021	1,580	1,370	Crude recovery; won depreciation
2022	2,075	1,890	Ukraine spike; excise cut Jul–Dec applied
2023	1,660	1,500	Crude normalisation; excise cut extended then ended
2024	1,680	1,520	Stable crude; won broadly stable
2025	1,580	1,420	2025 crude decline; government 15% excise cut applied
2026	1,750	1,580	Crude partial recovery; excise cut partially reversed

Temporary fuel tax cuts: Korea's anti-inflation tool

South Korea has used temporary Transport Energy Tax reductions more aggressively than most OECD countries:

2021–2023 cut: A 20–37% reduction in transport energy tax on petrol and diesel was in effect from late 2021 through 2023, costing an estimated KRW 10–12 trillion per year.
2025 cut: A further 15% reduction was applied from Q2 2025 during the crude price decline period, saving approximately KRW 250–350/litre for consumers.
2026 gradual rollback: As crude prices recovered, the government partially reversed the cut from mid-2026 — the phase-out contributed to the 2026 price increase.

The Korean approach of using excise cuts as a direct cost-of-living tool contrasts with Europe's experience, where the 2022 fuel rebates (Germany's Tankrabatt, France's ristourne, Spain's 20 ct/l rebate) were found to be partially absorbed as margin rather than fully passed to consumers.

Frequently asked questions

What is the petrol price in South Korea 2026? In 2026, Korean gasoline averages approximately KRW 1,700–1,850/litre (~USD 1.28–1.40/litre). Diesel averages KRW 1,500–1,650/litre. LPG autogas averages KRW 900–1,050/litre — roughly 45% cheaper than petrol, explaining its dominance in the taxi sector.: In 2026, Korean gasoline averages approximately KRW 1,700–1,850/litre (~USD 1.28–1.40/litre). Diesel averages KRW 1,500–1,650/litre. LPG autogas averages KRW 900–1,050/litre — roughly 45% cheaper than petrol, explaining its dominance in the taxi sector.
Why does South Korea have so many LPG cars? Korea's ~2.5 million LPG vehicles are predominantly taxis. Government policy historically restricted LPG to taxis, disabled drivers, and veterans due to subsidy management and supply limits. The resulting 2,200-station LPG network and cost advantage (~45% cheaper per km than petrol) entrenched LPG in the commercial fleet, even as EV adoption now threatens its share.: Korea's ~2.5 million LPG vehicles are predominantly taxis. Government policy historically restricted LPG to taxis, disabled drivers, and veterans due to subsidy management and supply limits. The resulting 2,200-station LPG network and cost advantage (~45% cheaper per km than petrol) entrenched LPG in the commercial fleet, even as EV adoption now threatens its share.
Does South Korea produce its own oil? South Korea produces essentially zero domestic crude and imports nearly 100% of its petroleum needs, mainly from Middle East producers. However, it compensates with world-class refining capacity of ~2.83 mb/d across four major facilities (SK Energy, GS Caltex, S-Oil, Hyundai Oilbank), making Korea a significant net exporter of refined products to Asia.: South Korea produces essentially zero domestic crude and imports nearly 100% of its petroleum needs, mainly from Middle East producers. However, it compensates with world-class refining capacity of ~2.83 mb/d across four major facilities (SK Energy, GS Caltex, S-Oil, Hyundai Oilbank), making Korea a significant net exporter of refined products to Asia.