South Korea Freezes Fuel Prices Amid Rising Oil Costs
The South Korean government has taken steps to mitigate the impact of rising oil prices on consumers. With international oil prices surging due to instability in the Middle East, the government decided to freeze the 8th petroleum price cap and extend the temporary fuel tax cut until September.
According to Deputy Prime Minister Koo Yun-cheol, 'With the recent re-escalation of tensions in the Middle East war, international oil prices are rising and volatility is increasing.' The government will maintain supply prices for gasoline, diesel, and kerosene at ₩1,784, ₩1,773, and ₩1,380 per liter, respectively.
The fuel tax reduction rates of 15% for gasoline and 25% for diesel and butane will also continue. The government is making efforts to stabilize food prices by injecting ₩350 billion into discounts for agricultural, livestock, and fishery products in July and August, and increasing the supply of eggs and mackerel.
The South Korean economy has been affected by the rising oil prices, with Brent crude futures reaching $100.69 per barrel on the ICE Futures exchange. The government is taking a cautious approach to protect consumers from price volatility, while also monitoring international situations in real-time.