South Korea extends fuel price caps amid global market volatility

The government of South Korea said on April 23 it will maintain existing price ceilings on fuel products for another two weeks, citing ongoing volatility in global energy markets and the need to manage domestic demand.

According to the Ministry of Trade, Industry and Resources, maximum prices for fuel supplied to gas stations by local refineries will remain unchanged at 1,934 won ($1.3) per liter for regular gasoline, 1,923 won for diesel, and 1,530 won for kerosene, Caliber.Az reports via foreign media.

This marks the second consecutive extension of the current price caps, which are reviewed every two weeks under a system introduced in mid-March to stabilize domestic fuel prices.

The ministry said the decision reflects lingering uncertainty in global energy markets, partly due to the fragile ceasefire between the United States and Iran, as well as the need to control demand despite a recent decline in international fuel prices. Over the past two weeks, global gasoline prices have fallen by about 8 percent, diesel by 14 percent, and kerosene by 2 percent.

Addressing questions about the future of the policy, Nam Kyung-mo, policy advisor to the industry minister, said the government is not currently considering ending the price cap system, pointing to continued uncertainty in the Middle East and fuel prices that remain elevated compared to pre-war levels.

Nam also reaffirmed the government’s plan to compensate domestic refiners for losses incurred under the policy. He noted that without the price cap system, fuel prices charged by refineries to gas stations would have been significantly higher, reaching around 2,200 won for gasoline, 2,800 won for diesel, and 2,500 won for kerosene per liter.

Separately, the ministry said it is working to ensure stable supplies of key industrial and medical materials. It confirmed that sufficient stocks of IV solution packaging materials, syringes, and medical gloves have been secured.

Authorities also reported no disruptions in supplies of critical inputs for major industries, including semiconductors, automobiles, and shipbuilding, noting that the country has arranged alternative imports of materials such as helium and hydrogen bromide.

By Sabina Mammadli