South Korea Keeps Petroleum Price Cap Amid Ongoing Middle East Tensions

South Korea's President Lee Jae Myung has called for the country to maintain its petroleum price cap until tensions in the Middle East ease. The move is aimed at protecting households and businesses from volatile oil prices, which have surged due to renewed US-Iran tensions.

The government introduced a petroleum price-ceiling system on March 13 to curb rising domestic fuel costs following the outbreak of conflict involving the United States and Iran. The ceiling applies to refinery supply prices for gasoline, diesel, and kerosene, but does not directly regulate retail prices at gas stations.

Refinery supply prices are capped at 1,784 won ($1.22) per liter for gasoline, 1,773 won for diesel, and 1,380 won for kerosene under the latest four-week price ceiling. The government has also extended temporary fuel-tax reductions by two months through September to ease living costs.

President Lee Jae Myung instructed authorities to intensify monitoring of hoarding, price-fixing, and other practices that could disrupt the market, warning businesses against exploiting economic hardship for illegal profit.