Gov't extends fuel price caps as Middle East tensions drive oil higher

The Korean government on Friday kept its price ceilings for fuel products unchanged for the second consecutive period amid elevated oil prices and prolonged tensions in the Middle East, the Ministry of Trade, Industry and Energy said.

Maximum prices for regular gasoline, diesel and kerosene supplied by local refiners to gas stations will remain unchanged at 1,784 won ($1.30), 1,773 won and 1,380 won per liter, respectively, for the next four weeks beginning Saturday, according to the Industry Ministry.

The government has maintained the current price ceilings for the past eight weeks, since lowering the cap to its current levels on June 26.

"International oil prices fell to around $70 per barrel in early August, but Brent crude rose to $90 on Thursday amid a prolonged stalemate in the Middle East, leading to the latest extension of the price caps," a ministry official told Yonhap News Agency.

The government introduced fuel price caps in mid-March to stabilize domestic fuel prices amid supply chain disruptions stemming from the war between the United States and Iran in the Middle East.

It plans to adjust the emergency measures flexibly while closely monitoring developments in the Middle East and the Korean economy, the ministry said.

Yonhap