Gasoline and diesel prices have declined for the first time in nine weeks amid a downward in global oil prices and the government's expanded fuel tax cut.

According to oil price portal Opinet run by the Korea National Oil Corporation, the average price of gasoline sold at pumps nationwide fell 20-point-nine won to a little over two-thousand-116 won per liter in the first week of July.

Gas prices have been rising for eight weeks since early May but the 37 percent fuel tax introduced this month has put a stop to further rises. 

The average price of diesel also fell seven-point-eight won this week to just over two-thousand-150 won per liter, ending its nine-week increase.

Prices are expected to drop further next week as it takes one to two weeks for tax cuts to be reflected in market prices.

Meanwhile global crude oil prices dipped this week on recession fears and increased U.S. stockpiles. 

Dubai crude, which South Korea mainly imports, fell six dollars 60 cents to 104 dollars 80 cents a barrel.