Seoul keeps fuel price caps unchanged amid Mideast tensions

The South Korean government decided to maintain its fuel price caps unchanged for a fourth consecutive four-week period on Friday, amidst high international oil prices and ongoing tensions in the Middle East, according to the Industry Ministry. Local refiners will continue to supply gasoline, diesel, and kerosene to gas stations at fixed prices of 1,784 won, 1,773 won, and 1,380 won per liter, respectively, starting Saturday.

This decision comes after the government had lowered the price caps to their present levels on June 26, as part of a 16-week policy since June 27. High international oil prices have been above $100 per barrel, with Brent crude reaching $105.90 per barrel on October 15, subsequently raising the prices of petrochemical products. The government's price freeze strategy is intended to mitigate upward pressure on consumer prices, the Ministry stated.

Initially introduced in mid-March, fuel price caps were implemented to stabilize domestic fuel prices amid supply chain disruptions caused by the U.S.-Iran conflict in the Middle East. The government intends to reassess the emergency measures as necessary.