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In response to soaring oil prices due to the Middle East situation, the government will temporarily implement a petroleum product price cap system starting midnight on March 12, 2026. The system sets a ceiling on the prices at which refiners supply gasoline stations, with initial prices set at 1,724 won per liter for gasoline and 1,713 won per liter for diesel.

Implementation of Price Cap System and Initial Price Setting

The government will temporarily implement a petroleum product price cap system starting midnight on March 12, 2026, in response to soaring oil prices caused by the Middle East situation. The Ministry of Trade, Industry and Energy announced that it would operate this system, which aims to stabilize petroleum prices by setting a ceiling on the prices at which refiners supply products to gas stations and other outlets. The initial maximum prices have been set at 1,724 won per liter for gasoline and 1,713 won per liter for diesel.

These initial maximum prices will be adjusted every two weeks, and the adjustment cycle may be altered if necessary. The system applies to regular gasoline, diesel, and kerosene, but premium gasoline is excluded from this price cap scheme.

Limited Application to Supply Prices and Enhanced Monitoring

This petroleum price cap system will only apply to the prices at which refiners supply products to gas stations and distributors; it does not cover retail prices at gas stations that consumers directly encounter. However, to prevent excessive increases in retail gas station prices, the government plans to closely monitor price and supply flows, utilizing civil organizations among others.

Specifically, if illegal activities such as hoarding are suspected, immediate investigations and strong legal actions will be taken. This measure is interpreted as an effort to ensure the effectiveness of oil price stabilization policies and minimize consumer damage.

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

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