South Korea’s government announced Thursday its decision to extend existing **fuel price ceilings** for an additional two weeks. This move comes as authorities carefully monitor fluctuating **international oil prices** and implement crucial **demand-side controls** to stabilize the domestic market.
The **Ministry of Trade, Industry and Resources** confirmed that the maximum retail prices for regular **gasoline**, **diesel**, and **kerosene** will hold steady. **Gasoline prices** will remain capped at 1,934 won (approximately US$1.3) per liter, **diesel prices** at 1,923 won per liter, and **kerosene prices** at 1,530 won per liter, for the upcoming fortnight. These **price caps** apply to fuel supplied to **gas stations** by local **oil refineries**.
This marks the second consecutive period the government has maintained these **fuel price ceilings** at their current levels. The **price cap system**, initially implemented in mid-March, is a bi-weekly mechanism designed by the government to effectively **stabilize domestic fuel prices** across the nation.
According to the ministry, the decision to enforce these **price caps** stems from persistent volatility within the **global energy market**. Factors such as the delicate ceasefire between the United States and Iran continue to influence market stability. Furthermore, the government aims to strategically **manage domestic demand** for **fuel products**, even amidst recent declines in overall **international fuel prices**.
Data from the ministry indicates a recent downward trend in global **fuel prices** over the last two weeks: **gasoline prices** decreased by approximately 8 percent, **diesel prices** saw a more significant 14 percent reduction, and **kerosene prices** fell by 2 percent.
Addressing previous remarks from the prime minister about reviewing the long-term future of the **price cap system**, Nam Kyung-mo, a policy advisor to the industry minister, clarified the government’s current stance. He stated that terminating the measure is presently not under consideration, primarily due to ongoing uncertainties regarding the **Middle East situation** and the fact that **fuel prices** remain elevated compared to pre-conflict benchmarks.
Nam also reaffirmed the government’s commitment to providing **fiscal compensation** to **oil refineries** to offset any financial losses incurred as a direct consequence of the **price ceiling system**.
Without the government’s intervention through this system, Nam estimated that the wholesale prices of **gasoline**, **diesel**, and **kerosene** sold by **oil refineries** to **gas stations** would have soared to approximately 2,200 won, 2,800 won, and 2,500 won per liter, respectively, underscoring the significant impact of the current **price controls**.
In a related development concerning the supply of **industrial materials**, the ministry reassured the public that the government is actively working to prevent potential supply disruptions for critical materials vital to the **medical sector**. They confirmed that sufficient stocks of essential items such as IV solution packaging materials, syringes, and medical gloves have been successfully secured, ensuring stability in healthcare operations.
