Prime Minister Kim Min-seok said Wednesday the government will decide whether to extend fuel price caps after a careful review, as the temporary measure expires this week. Introduced in mid-March to counter supply disruptions from the Middle East conflict, the system has shown positive effects despite mixed opinions. Kim made the remarks at a meeting on the crisis's economic impact.
Prime Minister Kim Min-seok made the statement Wednesday at a meeting of the emergency economic headquarters at the government complex in Sejong, discussing responses to the Middle East crisis. Current price ceilings for regular gasoline, diesel, and kerosene supplied by local refineries to gas stations stand at 1,934 won ($1.31), 1,923 won, and 1,530 won per liter, respectively. These caps, updated every two weeks, are set to expire Thursday.
"There are various opinions about the effectiveness of the maximum price system, but what is clear is that with its implementation, positive effects have been confirmed, such as the prevention of price spikes, eased decline in consumer spending and reduced shock to cargo truck drivers and other sectors sensitive to oil prices," Kim said.
"The government will decide whether to carry out a fourth round of the maximum price system by fully and carefully considering the positive effects and diverse opinions," he added.
The government introduced the system in mid-March to mitigate supply disruptions from the Middle East war. On Tuesday, industry ministry deputy minister Yang Ghi-wuk said Kuwait's force majeure on oil shipments would have limited impact, as South Korea has secured 70 million barrels of crude for May, covering 80% of usual imports.
Critics argue the caps are boosting consumption amid shortages, straining public finances. Average gasoline prices rose 18.4% and diesel 25% since February 27, the day before the Iran war began. Yang called it an "emergency measure," stressing considerations for households and workers like truck drivers.
