Govt. keeps fuel price caps steady amid energy volatility

Government cites Middle East tensions, keeps room for future adjustments

South Korea kept its current fuel price caps unchanged Friday amid renewed tensions in the Middle East, while leaving open the possibility of adjustments down the road.

Maximum prices for regular gasoline, diesel and kerosene supplied to gas stations by local oil refiners will remain at 1,784 won ($1.21), 1,773 won and 1,380 won per liter, respectively, according to the Ministry of Trade, Industry and Resources.

The latest decision will take effect for four weeks starting Saturday.

“With the intensifying standoff between the United States and Iran, the number of oil tankers passing through the Strait of Hormuz is declining again, leading to a sharp escalation of tensions in the Middle East,” the Industry Ministry said.

The government added the decision was intended to help address consumer price hikes driven by energy market volatility, with inflation remaining above 3 percent in June.

“The decision is aimed at shielding the economy from heightened volatility in global oil prices amid uncertainties in the Middle East. We focused on easing the burden on consumers who depend on oil prices for their livelihoods, such as cargo truck drivers, delivery workers, farmers and fishers,” it added.

South Korea will manage the fuel cap system in a proactive and flexible manner by monitoring situations at home and abroad, it added.

The country adopted the price ceiling system in March in a bid to stabilize domestic fuel prices amid volatility in the global energy market. (Yonhap)

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