The government plans to lower the crude oil resource security crisis warning from Level 3 to Level 2 starting July 1, while fully lifting the natural gas alert, following stabilized global oil prices amid progress in US-Iran peace talks.
The Ministry of Trade, Industry and Resources announced the adjustment on June 30. Under the four-tier national resource security crisis warning system, the crude oil alert was first issued at the lowest level in early March, raised to Level 2 later that month and to Level 3 in April. The natural gas alert has been at Level 2 since April.
With the change, the government will gradually lift emergency measures such as the crude oil swap system with private firms and subsidies for shipping costs from regions outside the Middle East. These measures expire on June 30. The ban on hoarding raw materials for petrochemical products will remain in place beyond July.
Vice Industry Minister Moon Shin-hak conveyed the plan during a Cabinet meeting at the presidential office. Industry Minister Kim Jung-kwan said in a release that the government will refrain from taking an excessively negative or positive stance until the situation is fully normalized. The ministry noted increased crude imports bypassing the Strait of Hormuz and from the US, while maintaining policies to diversify sources and strengthen reserves.
