Korea Freezes Petroleum Prices Amid Rising International Costs

The South Korean government has frozen the highest price of petroleum products for another four weeks due to rising international prices. The Ministry of Trade, Industry and Energy announced that the 9th round of pricing will be set at KRW 1,784 per liter of gasoline, KRW 1,773 for diesel, and KRW 1,380 for kerosene.

This decision comes as international petroleum product prices have been increasing due to geopolitical tensions in the Middle East. Gasoline prices in Singapore's spot market stabilized at $107.78 a barrel in June and $106.78 in July, but rose to $109.65 in August. Diesel is also on the rise, reaching $156.57 in August.

The government has chosen not to raise the highest price despite rising oil prices, citing that the current level of international oil prices and petroleum products is similar to when the 8th round was decided. However, this decision may lead to increased losses for refineries and a financial burden on them to compensate for these losses.