The government said Thursday it will maintain the current price ceilings on fuel products for another two weeks, considering international oil prices and demand-side controls.
Pressure is intensifying on the government’s fuel price cap policy as rising global oil prices test its sustainability, even as authorities move to extend the measure to curb inflation.
Prime Minister Kim Min-seok said Wednesday the government will decide whether to keep price caps on fuel products after a careful review, as the temporary measure designed to offset price hikes caused by the Iran war is set to expire this week.
The fuel price cap system helped consumer prices drop by up to 0.8 percentage points in March, a state-run economic think tank said in a report Wednesday, noting the effects of fuel tax cuts will also begin to appear this month.
The Korean government’s oil price cap is failing to curb demand while placing a growing financial burden on refiners amid volatile global oil prices.
Korea has opted to freeze its third-round fuel price caps, citing volatility stemming from the cease-fire, as domestic prices for petroleum products, including diesel, continue their uphill march.
Industry Minister Kim Jung-kwan vowed on Monday to respond sternly to gas stations that excessively hike fuel prices — despite a price cap system in place — after spot-checking a gas station suspected of unfair market practices, Kim's office said.
The value of Korea's virtual asset market dipped 8 percent in the second half of last year from six months earlier, largely on falling prices of key cryptocurrencies, data showed Wednesday.
Korea is considering a 20 percent cap on major shareholders’ stakes in cryptocurrency exchanges, a move that could reshape the governance of the country’s digital asset trading platforms.
Domestic oil refiners are suffocating from the pressure as the government moves to curb surging fuel prices triggered by the Middle East crisis — from a fuel price cap to investigations into possible collusion and the revival of a windfall tax bill.
Korea JoongAng Daily Sitemap
