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🇰🇷 South Korea /Economy & Trade

South Korea freezes maximum oil prices for ninth time amid global price hikes

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • South Korea's government has frozen the maximum price for gasoline and diesel for the ninth consecutive period.
  • The decision considers the public's burden from recent extreme weather, despite rising international oil prices due to Middle East instability.
  • The current maximum prices, set for four weeks starting August 22, are 1,784 won per liter for gasoline and 1,773 won for diesel.

South Korea's government has decided to freeze the maximum retail prices for petroleum products for the ninth time, maintaining current levels despite escalating international oil prices.

The decision comes as global oil prices rise due to instability in the Middle East. However, the government cited the increased burden on citizens from recent extreme weather conditions, such as heatwaves and heavy rainfall, as a key factor in its decision to keep prices stable. The Ministry of Trade, Industry and Energy announced that the maximum price for gasoline will remain at 1,784 won per liter, diesel at 1,773 won, and kerosene at 1,380 won. These prices will be effective for four weeks starting August 22.

International oil prices have seen an upward trend. Brent crude reached $93.8 per barrel by August 20, with Dubai crude at $95.6 and West Texas Intermediate at $87.8. International gasoline prices rose to $114 per barrel in the first week of August, up from $105, while diesel prices increased from $148 to $164 in the same period. Despite these global increases, the government assessed that current international prices are similar to those during the previous price cap decision.

The ministry stated it would continuously monitor domestic and international situations, including Middle East developments, oil supply and demand, and the impact on public livelihoods. The price cap system, first implemented in March, aims to stabilize prices during periods of international oil price surges or supply instability. The government has adjusted the price caps several times, lowering them in June before maintaining the current levels for the last two periods.

As the Middle East situation is changing by the minute, we will closely monitor the domestic and international situation in real time. We plan to operate the maximum price system nimbly and flexibly, comprehensively considering the Middle East situation, oil supply and demand, price and livelihood burdens, and the need for demand management.

— Ministry of Trade, Industry and EnergyStatement on the government's approach to managing petroleum prices amidst global instability and domestic concerns.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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