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Minister of Trade, Industry and Energy, Kim Jeong-kwan, announced that 43% of gas stations nationwide lowered prices on the first day of the oil price cap. He explained the government's market intervention to alleviate public burden amid international instability and detailed efforts to stabilize supply through US oil imports and the passage of the Dae-mi Investment Special Act.

43% of Gas Stations Lower Prices on First Day of Oil Price Cap

Minister of Trade, Industry and Energy Kim Jeong-kwan announced that as of 2 PM today (10th), 43% (approximately 4,633 out of 10,600 total) of gas stations nationwide have lowered their prices following the implementation of the oil price cap system. He anticipates that full-scale price reductions will be observed within the next 2-3 days, with most citizens feeling the impact by the end of this week. Notably, refineries' directly-operated gas stations have already made significant price adjustments.

Rationale for Market Intervention and Controversy Over Refinery Loss Compensation

Minister Kim explained that the government's intervention was necessitated by the unprecedented international instability, including threats to the Strait of Hormuz, and the asymmetric nature of domestic oil prices, which rise quickly and fall slowly, thereby increasing the burden on citizens, particularly common people and vulnerable groups. He emphasized that the price cap system serves as a minimal safety net for shared burden among refineries, gas stations, and the government. Addressing criticism that refinery losses would be compensated by tax money, Minister Kim stated that to avoid past mistakes such as the windfall tax debate, a settlement committee comprising experts (accountants, lawyers, professors) will be formed to thoroughly review refineries' profit and loss and prevent excessive profits.

Efforts for Stable Oil Supply and US Trade Issues

The South Korean government maintains strategic oil reserves for approximately 208 days, meeting International Energy Agency (IAE) standards. Minister Kim stated that efforts are underway to secure additional crude oil from diverse sources, including the United States, with expected arrivals around May-June. He emphasized that contingency plans are being prepared to minimize the burden on the national economy in response to changing situations. Furthermore, he noted that the US has positively evaluated the passage of the Dae-mi Investment Special Act by the National Assembly, significantly reducing concerns about tariff re-imposition previously threatened by President Trump. Regarding the US Trade Act Section 301 investigation, Minister Kim added that the government will do its best to ensure a balance of interests between Korea and the US and prevent disadvantages compared to competitor countries in key export items like automobiles.

*Source: YouTube: SBS News (2026-03-13)*

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