Seoul, May 14: South Korea’s fuel price control measures continue to show strong compliance, with more than 96 per cent of petrol stations across the country maintaining prices within the government’s capped limits despite persistent volatility in global oil markets.
The Ministry of Trade, Industry and Energy said the price ceiling system has played a key role in shielding consumers from sharp increases in international crude prices triggered by ongoing geopolitical tensions in the Middle East.
According to the ministry, a vast majority of the country’s fuel stations kept gasoline prices unchanged as of Wednesday. The government last week extended its fuel price cap policy for a third straight phase, maintaining fixed upper limits on gasoline, diesel and kerosene prices supplied by domestic refiners.
Officials said the intervention has helped South Korea manage fuel inflation more effectively than several advanced economies. While energy prices have climbed worldwide in recent months, the pace of increase in South Korea has remained comparatively moderate.
Government data showed that fuel prices in countries such as the United States and several European nations rose significantly more during the same period. Japan, meanwhile, also managed to contain price increases through subsidy-driven support measures.
The ministry noted that fuel consumption has softened since the price cap was introduced in March, indicating that consumers are becoming more cautious amid higher transportation and living costs.
Deputy Minister Yang Ghi-wuk said authorities are attempting to strike a balance between stabilising prices and protecting overall economic activity. He warned that fully passing global oil price increases on to consumers could further weaken spending and consumption.
Officials also signalled that the government is unlikely to remove the price cap unless global crude prices retreat below the $100-per-barrel mark and tensions surrounding the Strait of Hormuz begin to ease.
Global oil prices remained elevated on Wednesday, with Brent crude trading above $105 per barrel and US benchmark West Texas Intermediate crude holding above $101 per barrel, reflecting continued uncertainty in energy markets.