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Iran war triggers unprecedented gasoline price cap in Korea (KOR)

Published: 06 Mar. 2026, 10:18

Vehicles line up to refuel at the Mannam Square service area gas station along the Gyeongbu Expressway in Seocho District, Seoul, on March 4, as international oil prices rise following the war between the United States and Iran. [NEWS1]

A sharp rise in domestic fuel prices following tensions in the Middle East has prompted the government to consider an unprecedented intervention in the gasoline market.

President Lee Jae Myung on Thursday ordered officials to prepare a “maximum price designation system” for gasoline. The measure would allow the government to set a ceiling on retail fuel prices if authorities determine that excessive increases are occurring.

Lee said the government must respond firmly to attempts to hoard fuel or exploit the crisis through unreasonable profits. “Even if people say money can be a devil, this seems excessive,” he said, criticizing what he described as opportunistic price increases.

Deputy Prime Minister and Finance Minister Koo Yun-cheol also warned against sharp price hikes. He said that considering the usual time lag between international oil prices and domestic fuel costs, it is too early for global price movements to significantly affect Korea’s retail market. Raising prices excessively under such conditions amounts to profiteering that harms ordinary people’s livelihoods, he added.

Fuel prices have indeed climbed quickly. As of 4 p.m. Thursday, the average price of gasoline at stations nationwide stood at 1,834.32 won per liter ($6.94 per gallon), up 56.84 won, or 3.2 percent, from the previous day. The figure marks the highest level in three years and seven months.

Domestic gasoline prices usually follow refined product prices in the Singapore market with a lag of two to three weeks. Although international oil prices have risen and currency volatility has increased pressure on import costs, the recent pace of price increases appears excessive.

The government is right to crack down on market disruptions such as hoarding, collusion or other practices that exploit a crisis, analysts say.

At the same time, however, direct government regulation of market prices should be approached with caution.

The Petroleum and Alternative Fuel Business Act provides a legal basis for the government to designate maximum fuel prices in exceptional circumstances. Yet there are few precedents for nationwide regulation of retail gasoline prices at service stations.

Lee appeared aware of these concerns when he said that if a uniform national ceiling proves difficult, authorities should explore practical alternatives such as applying the policy by region or by fuel type.

The debate comes shortly after the government issued a rare order requiring flour producers suspected of collusion to reset prices. Although the Monopoly Regulation and Fair Trade Act contains such provisions, they have not been invoked in about two decades.

The long period of nonuse reflects the government’s reluctance to intervene directly in market pricing.

Having a legal basis for intervention does not automatically make such actions desirable. Regulation based solely on legal authority is not always the best policy response, nor does it necessarily reflect sound governance under the rule of law.

Authorities should therefore carefully distinguish between what the government must do and what should be left to the market.

이란 전쟁이 불러낸 초유의 휘발유 최고가격제

중동 사태로 국내 기름값이 급등하자 정부가 최고가격제 카드를 꺼냈다. 이재명 대통령이 어제 휘발유 ‘최고가격 지정제’ 시행을 지시했다. 이 대통령은 “매점매석하거나 불합리한 폭리를 취하려는 시도엔 단호히 대응해야 한다”며 “아무리 ‘돈이 마귀’라고 하지만 조금 심하지 않으냐”고 지적했다. 구윤철 경제부총리도 “국제가격의 반영 시차 등을 감안할 때 아직 국내 가격에 실질적 영향을 줄 시점이 결코 아닌데도 과도하게 가격을 인상해 폭리를 취하는 것은 민생을 좀먹는 몰염치한 행위”라고 했다.

기름값이 많이 오르긴 했다. 전국 주유소의 평균 휘발유 가격은 어제 오후 4시 기준 1834.32원으로 전날보다 L당 56.84원(3.2%) 올랐다. 3년7개월 만에 최고치다. 국내 주유소 가격은 통상 2~3주 시차를 두고 싱가포르 석유제품 시장가에 연동돼 움직인다. 국제유가 상승에 환율 불안까지 겹쳤다지만 최근의 기름값 상승세는 지나치다. 위기 상황을 악용하는 매점매석이나 담합행위 등 시장질서 교란 행위는 정부가 마땅히 엄중하게 단속해야 한다.

하지만 시장 가격에 대한 정부의 직접 규제는 최대한 자제하며 조심스럽게 접근할 필요가 있다. 석유사업법에 근거 규정이 있긴 하지만 실제로 주유소 판매가를 전국적으로 규제한 전례는 찾기 힘들다. 이 대통령이 “최고가격을 일률적으로, 전국적으로 지정하기 어렵다면 지역별·유류 종류별로 적용하는 등 현실적 방법을 찾아 신속하게 지정하도록 해 달라”고 언급한 것도 이런 고민 때문일 것이다.

정부는 최근 밀가루 가격 담합 혐의를 받은 업체에 가격 재결정 명령을 내렸다. 공정거래법에 근거 규정이 있지만 실제 발동은 20년 만이다. 오랫동안 해당 조치가 발동되지 않았던 건 나름의 이유가 있다. 정부가 시장가격에 직접 개입하는 게 부담스러웠기 때문이다. 법률에 근거 규정이 있다고 다 괜찮은 건 아니다. 법에 따른 규제나 강제(rule by law)가 능사는 아닐뿐더러 바람직한 법치(rule of law)도 아니다. 정부의 일과 시장의 일을 현명하게 구분할 필요가 있다. 정부는 가격의 직접 통제에 따르는 부작용을 균형 있게 검토해야 한다.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.