S. Korea to conditionally ease diesel export restrictions amid stable crude supplies

South Korea plans to gradually lift export limits on diesel starting in November, contingent upon maintaining consistent domestic supply, according to the Ministry of Trade, Industry and Resources. The government intends to permit diesel exports of up to 110 percent of the volume from the same month a year prior, surpassing the current 100 percent cap.

This elevated cap will only be enacted when oil refiners honor their domestic supply commitments and preserve ample inventories, the ministry further explained. South Korea implemented diesel export restrictions following the introduction of an oil price cap system in March to ensure consistent domestic supply. Recently, local oil refiners have advocated for easing such restrictions.

The Ministry of Trade, Industry and Resources affirmed that crude supplies remain stable, citing import volumes for October and November, which equated to at least 100 percent of the monthly average from the previous year. Given ongoing tensions in the Middle East, the government will vigilantly observe petroleum product supplies and promptly restore the earlier cap if additional supply worries emerge, stated a ministry official.