The South Korean government is reviewing measures to curb gasoline price surges triggered by escalating Middle East tensions. President Lee Jae Myung criticized unfair price hikes during a Cabinet meeting and directed the consideration of a price ceiling. The Ministry of Trade, Industry and Resources issued a Level 1 alert to prepare for potential energy supply disruptions.
On Thursday, March 5, 2026, during a Cabinet meeting at Cheong Wa Dae in Seoul, President Lee Jae Myung condemned the sharp rise in domestic gasoline prices amid escalating Middle East tensions. He noted that while international crude prices have increased due to supply concerns, there has been no serious disruption to global oil supplies, yet retail prices in Korea surged immediately without the usual two- to three-week lag.
"Objectively, there has not been a serious disruption to global oil supplies, yet prices suddenly skyrocketed," Lee said, citing reports of price differences by time of day and hikes of nearly 200 won per liter at some stations. According to the Korea National Oil Corp.'s Opinet, the national average gasoline price reached 1,807.1 won ($1.23) per liter as of 10 a.m., up 29.6 won from the previous day—the first time above 1,800 won since August 2022. In Seoul, it rose to 1,874.4 won, a 31.8 won increase. Diesel prices also jumped, with the national average at 1,785.3 won (up 56.5 won) and Seoul at 1,865.4 won (up 61.4 won).
The president instructed officials to quickly explore price control options, including a ceiling that could vary by region or fuel type if a nationwide limit proves challenging. He called for urgent legal measures to penalize unfair hikes, noting current difficulties in enforcement. Deputy Prime Minister and Finance Minister Koo Yun-cheol stated the government could invoke Article 23 of the Petroleum Business Act to set an upper limit via official notice if prices remain high. "Currently, petroleum supply is stable... but there have recently been cases where businesses seek to pursue private gains by excessively raising prices," Koo said, describing such acts as "shameless behavior."
Separately, the Ministry of Trade, Industry and Resources issued a Level 1 (attention) resource security alert for oil and gas—the first for petroleum in Korea—due to the Iran crisis following U.S. and Israeli attacks over the weekend. International oil prices have risen over 10%, exacerbated by concerns over the Strait of Hormuz closure. Korea holds 208 days of oil reserves and plans to secure additional supplies, prepare strategic reserve releases, and intensify market monitoring. An intensive crackdown on unfair practices like hoarding, collusion, and price gouging begins Friday. Industry Minister Kim Jung-kwan said, "Since it is difficult to predict when the conflict will end, the government will maintain full readiness and monitor the situation very seriously."
President Lee also directed a 100 trillion won ($68 billion) program to stabilize financial markets and ordered preparations for evacuating Koreans in the region, coordinating with allies if needed.
