The measure, which took effect from midnight on Thursday,
March 12, was confirmed in a statement by the country’s energy ministry.
Officials said the decision was taken to limit the sharp rise in domestic fuel
prices triggered by instability in the Middle East.
South Korea, Asia’s fourth-largest economy, is heavily
dependent on imported energy, with a large portion of its oil shipments passing
through the Strait of Hormuz. The government has therefore begun exploring
alternative supply sources to secure its energy needs.
The price ceiling applies specifically to supply prices
charged by refiners to distributors and fuel stations, rather than the final
retail prices paid by consumers.
Under the new policy, the maximum supply price for regular
gasoline has been fixed at 1,724 won (about $1.70) per litre, while automotive
diesel has been capped at 1,713 won per litre. Officials said the capped prices
are lower than the average fuel prices submitted by refiners on Wednesday,
March 11, indicating an effort to quickly stabilise the domestic market.
The price controls will initially remain in place for two
weeks, after which authorities will reassess the situation and adjust the
limits depending on global oil market conditions. To further strengthen energy
security, Seoul recently secured a deal to import around four million barrels
of crude oil from the United Arab Emirates.
The government also noted that South Korea currently
maintains strategic oil reserves equivalent to about seven months of national
consumption, providing a buffer against potential supply disruptions caused by
the ongoing conflict.
0 Comments