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Gasoline costs in Korea are lower than those in most European nations, about US$4
per gallon. The rise between May and September of 2000, when most of the
rest of the world was experiencing much larger price increases, was only 9 percent. Despite the fact that Korea has no petroleum resources of its own, fuel-hungry SUVs and vans are becoming more popular with Koreans. This is because of US-influenced reductions in purchase and use taxes on these vehicles, and because many of the larger vehicles use diesel fuel or LP gas. Diesel fuel gives better fuel efficiency and costs about half as much as gasoline. LP gas yields lower exhaust emissions, and until recently has been priced at about one-quarter the cost of gasoline to encourage its use (most or all of Korean taxicabs run on LPG). Korea's vehicle use of LP gas increased 36% in 2000, and diesel fuel consumption was up 5%. The Korean government regulates the price of motor fuels, so there's no price competition. Instead, filling stations compete on "service." To a Korean, "service" means more than having an attendant clean the windows and check the oil. Often it means a free bonus. For example, many gas stations give out packets of facial tissues with a fillup. The cost of gasoline is only the most obvious cost of driving. The other is health risk and environmental degradation. Although Kangnung is said to have Korea's cleanest air, consider that Seoul now has the world's dirtiest. In reality, the smog over Kangnung is about equal to that in most medium-sized US midwestern cities.
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