South Korea awaits resolution of Iran conflict before removing oil price controls

South Korea’s Minister of Industry Kim Jung-kwan has stated that the country would need the resolution of the US–Iran conflict, along with the stabilisation of global oil prices, before it can abolish its domestic fuel price cap system.

He said the government was considering three main conditions for phasing out the mechanism: the end of the conflict between the United States and Iran, normalisation of oil supplies following a potential reopening of the Strait of Hormuz, and agreements between oil refiners and gas station operators, Caliber.Az reports, citing Korean media.

The minister stressed that it is still too early to discuss the end of the conflict or its long-term impact on the global oil market.

He noted that the current price cap system has helped contain fuel price increases: gasoline prices in South Korea have risen by around 10% compared with pre-war levels, while in the United States the increase has reached 30–40%.

Since mid-March, South Korea has operated a temporary mechanism under which the government sets maximum prices for gasoline, diesel, and kerosene every two weeks to stabilise the market.

By Bakhtiyar Abbasov