South Korean President urged the government to quickly implement measures to cap oil prices in order to curb soaring energy costs resulting from the Middle East conflict, as global oil prices approached $120.
March 9, 2569 at 11.13:XNUMX a.m. Bloomberg reported that South Korean President Lee Jae-myung Calls are being made for the government to urgently implement measures to cap fuel prices in order to control soaring energy costs, following the rapid increase in global oil prices due to conflicts in the Middle East.
South Korean leader said during an emergency economic meeting on Monday that authorities should urgently take decisive action and impose price caps on oil to prevent excessive price increases.
The order comes as global oil prices surge near $120 per barrel, the highest level since 20565, amid increased supply risks from war in the Middle East. Producing countries in the region have begun cutting production, the Strait of Hormuz remains largely closed, and the United States has signaled a possible escalation of the conflict.
South Korea is heavily reliant on imports for most of its energy, with approximately 70% of imported oil traveling through the Strait of Hormuz. Therefore, this oil price cap is a crucial tool for stabilizing the domestic energy market, and it marks the first time the government has implemented such a measure in almost 30 years.
Data from Korea National Oil Corp. indicates that... The average price of gasoline at gas stations across the country is 1,895.32 won per liter, or approximately $1.27. On Sunday, the price rose by approximately 12% from 1,692.89 won per liter on February 28, before the United States began its airstrikes against Iran.
side Kim Jong-kwan, South Korea's Minister of Industry. The statement indicated that the government could quickly implement a fuel price ceiling if market conditions worsened, and that most of the preparations were already complete.
The government's short-term measures will begin with releasing oil from the country's strategic reserves, which contain approximately 100 million barrels, enough to meet domestic needs for more than 210 days.
The government also convened a meeting with oil refinery operators and the industrial sector to discuss the energy price situation, and warned companies not to take advantage of the surge in global oil prices by raising prices excessively.
Meanwhile, authorities are preparing supply chain contingency measures after petrochemical company Yeochun NCC declared a force majeure last week due to naphtha imports being affected by turmoil in the Middle East.
South Korea continues to seek alternative sources of oil imports to mitigate the risks posed by the Strait of Hormuz. The United Arab Emirates (UAE) has already proposed shipping crude oil via routes that bypass the strait.
refer : bloomberg.com
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