South Korea will lower the cap on fuel prices to reflect the recent decline in global crude oil prices while freezing electricity and gas rates in the second half, Finance Minister Koo Yun-cheol said on Friday.
Finance Minister Koo Yun-cheol made the remarks during a meeting with economy-related ministers. The cap system will remain in place until consumer prices are fully stabilized. Details of the adjustment are expected to be announced later Friday.
The government introduced fuel price caps in mid-March amid supply chain disruptions from the conflict in the Middle East. Koo said the government will adjust the emergency measures in phases by monitoring developments in the Middle East and the South Korean economy.
Koo noted external uncertainties have been easing after the memorandum of understanding between Washington and Tehran. The government aims to keep inflation at around 3 percent in the second half. It will also implement discount programs for agricultural and fishery products in July and August along with expanded imports of fresh eggs and mackerel.
