South Korea will lower its cap on fuel prices to reflect falling global crude oil costs, while freezing electricity and gas rates for the second half of the year. The government aims to stabilize consumer prices and ease burdens on the public.
South Korea has frozen fuel price ceilings for the fourth consecutive time, extending them for two weeks due to stable oil supply and moderating global crude prices. The government aims to ease inflationary pressure and financial burdens on citizens.
Over 96% of South Korea's gas stations have maintained gasoline prices unchanged under the fuel price cap system, with domestic prices rising 19% for gasoline and 26% for diesel since late February, compared to sharper increases in other major economies.
TotalEnergies CEO Patrick Pouyanné warned that the company may end its fuel price cap in France if "superprofits" are taxed, citing refinery losses and the cost of maintaining the cap.
South Korea's fuel price cap system, introduced March 13, helped lower consumer prices by up to 0.8 percentage point in March, according to the Korea Development Institute. Without the caps, gasoline would have been 460 won higher per liter, diesel 916 won higher, and kerosene 552 won higher. Expanded fuel tax cuts taking effect in April are expected to reduce consumer prices by around 0.2 percentage point this month.
South Korea's Prime Minister Kim Min-seok announced the government will carefully review whether to extend fuel price caps, set to expire Thursday, after confirming positive effects in preventing price spikes and supporting consumer spending.
