South Korea Cuts Off Fuel Price Hike Amid Rising Oil Costs

The South Korean government has decided to freeze fuel price caps due to rising global oil prices. As of August 21, international oil prices have increased to over $90 per barrel, with Brent crude at $93.8, Dubai crude at $95.6, and West Texas Intermediate (WTI) at $87.8. This is a significant jump from the first week of the month when prices were around $80 per barrel.

The government's decision to freeze fuel price caps comes as domestic gas station prices have been declining since June 27, when the ceiling was first cut by 150 won per liter. As of August 20, the nationwide average is 1,862 won for gasoline and 1,845 won for diesel.

The Ministry of Trade, Industry and Resources said it will freeze the oil price ceiling at the current level for four weeks starting at midnight on the 22nd. The ceiling, based on refiners' supply prices, is 1,784 won per liter for gasoline, 1,773 won for diesel, and 1,380 won for kerosene.