South Korea Freezes Oil Prices Amid Global Market Volatility
The government of South Korea has decided to freeze the maximum oil prices for four weeks starting from midnight on July 25th, citing concerns over inflation and the burden on people's livelihoods. According to the Ministry of Trade, Industry and Resources, the current price caps are 1,784 won per liter for gasoline, 1,773 won for diesel, and 1,380 won for kerosene.
The decision comes after international oil prices surged due to worsening conditions in the Middle East. Brent crude topped $101 per barrel on July 23rd, with West Texas Intermediate (WTI) at $92 and Dubai crude at $97. However, Yang Gi-uk, Director General for Industrial and Resource Security, noted that on a monthly average, July's international oil prices are lower than June averages.
The Ministry of Trade and Industry will continue to monitor the situation in the Middle East and adjust prices as needed. The current price cap system has already suppressed upward factors by about 100 won for gasoline and 300 won for diesel.