South Korea considers priority purchase of 6.86 million barrels of crude

South Korea’s ruling Democratic Party (DP) and government officials are considering exercising priority purchase rights to secure more than 6 million barrels of crude oil stored by foreign refiners in the country, officials said on March 10, amid escalating conflict in the Middle East.

DP lawmakers and government representatives reviewed the plan during an inaugural meeting of a task force set up earlier in the day to assess the economic impact of heightened regional tensions and discuss potential response measures, Yonhap reports.

"South Korea can exercise priority purchase rights over crude oil jointly stockpiled by foreign companies in the country at market prices," Rep. Oh Gi-hyoung said during a briefing.

The proposed plan would allow Seoul to access 6.86 million barrels of crude owned by foreign refiners currently stored at domestic facilities. Officials also discussed strategies to diversify crude oil and liquefied natural gas imports from regions outside the Middle East, and to explore alternative supply routes that bypass the Strait of Hormuz, which has effectively been blocked due to the ongoing conflict.

In addition, a joint government inspection is planned to crack down on price collusion and other illegal practices, Rep. Oh said.

"We will focus on inspecting around 200 gas stations and swiftly take necessary measures after announcing the result," he added.

The government has also announced plans to implement a fuel price capping system as tensions between the U.S. and Iran intensify in the Middle East, aiming to stabilize domestic energy costs.

By Sabina Mammadli