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Government Revives 'Oil Price Cap' After 30 Years to Stabilize Fuel Costs
Government Revives 'Oil Price Cap' After 30 Years
The South Korean government has revived the Oil Price Cap system for the first time in 30 years, in response to unstable oil prices caused by the Middle East war. Starting tomorrow, oil refiners must supply gasoline to gas stations at or below 1,724 won per liter, and diesel at or below 1,713 won per liter. These capped prices are calculated based on Singapore's February spot oil prices, reflecting two weeks of fluctuations. If refiners can prove losses, the government plans to compensate them quarterly.
Monitoring and Sanctioning Gas Station Profiteering
To prevent excessive margins by gas stations, the government will monitor prices through civic groups. Gas stations caught profiteering by more than 300-400 won per liter will have their names disclosed. Repeated offenses will lead to investigations into collusion and tax evasion, followed by business suspension. Consumers are expected to feel the effects of price reductions two to three days after gas stations exhaust their current stock. The Ministry of Trade, Industry and Energy (MOTIE) plans to maintain the price cap system until fuel prices stabilize.
*Source: YouTube: MBC News (2026-03-12)*
