Worsening exchange rate causes gas prices to skyrocket

[Anchor]

Diesel prices are skyrocketing.

It has surpassed 1,500 won per liter.

Analysts suggest that the recent surge in the won-dollar exchange rate has a greater impact than flucuations in international oil prices.

Both large and small businesses are in a state of emergency.

Lee Soo-yeon reports.

[Report]

Vehicles are gathering at self-service gas stations where prices are slightly cheaper.

This week, the average price of gasoline at gas stations nationwide was 1,662 won per liter.

Diesel prices have also exceeded an average of 1,500 won.

It has been four months since the last time diesel prices surpassed 1,500 won, at the end of August.

[Park Hyun-woo/Seoul driver: "It is somewhat burdensome. With the dollar rising, if gas prices go up further, it will be a bit of a burden to drive."]

So far this month, international oil prices have not risen significantly.

The Korea Petroleum Association and others analyze that the sharp rise in the won-dollar exchange rate has affected domestic gas prices.

In fact, last week, the international gasoline price dropped from $82 to the $81 range per barrel, but the price converted to won has actually increased.

[Cho Sang-beom/Director of External Cooperation, Korea Petroleum Association: "The exchange rate has been rising for over two months, which has created upward pressure on domestic gas prices, leading to a continuous increase for 11 weeks."]

For companies that import raw materials, costs are rising along with the exchange rate, even without doing anything.

In particular, sharp fluctuations in the exchange rate are cited as a factor that increases uncertainty in business management.

[Jang Sang-sik/Director of Trend Analysis, Korea International Trade Association: "Companies cannot set production or sales plans, especially plans for price fluctuations. Therefore, companies find it most difficult to deal with large fluctuations in the exchange rate."]

Small and medium-sized enterprises are hit harder. A 1% increase in the exchange rate results in an approximate 0.36% increase in losses.

Some large and mid-sized companies are also reportedly adjusting their business plans while keeping an eye on the effects of high exchange rates.

This is KBS News, Lee Soo-yeon.