South Korea has introduced a temporary cap on fuel prices to cushion the impact of rising global oil costs triggered by the ongoing Iran conflict.
The measure, announced Thursday in a statement by the country’s energy ministry, would take effect at midnight and is aimed at limiting the surge in domestic fuel prices as tensions in the Middle East disrupt global energy supplies.
The statement said the move was necessary to ease pressure on the economy, which relies heavily on imported energy, particularly crude shipments that pass through the Strait of Hormuz.
First Price Control Since 1997
This is the first time since 1997 that South Korea has imposed such controls on fuel prices.
According to the ministry, the price ceiling applies to the rates refiners charge distributors and gas stations, not the retail prices motorists pay at filling stations.
Under the new policy, the maximum supply price for regular gasoline has been fixed at 1,724 won ($1.70) per litre, while automotive diesel is capped at 1,713 won per litre.
The statement said the capped rates are lower than the average supply prices reported by refiners earlier this week.
The price limits would remain in effect for two weeks, after which the government will review and adjust them depending on developments in the global oil market.
South Korea has also moved to strengthen its energy security amid the geopolitical crisis.
Last week, Seoul reached an agreement to import around four million barrels of crude oil from the United Arab Emirates to reinforce domestic supplies.
The statement noted that the country currently holds strategic oil reserves sufficient for about seven months of consumption.
The latest measure highlights growing global concerns over the impact of the Middle East conflict on energy markets, with countries scrambling to shield their economies from rising fuel costs and supply disruptions.
