Deputy Minister of Industry: "No Power Supply Issues This Summer... Oil Prices Expected to Remain Stable"

Citizens are refueling their vehicles at the Affordable Gas Station in Mannam Square Rest Area, Seocho-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

Park Il-jun, Vice Minister of the Ministry of Trade, Industry and Energy, stated that power supply and demand will be stable this summer, and that unstable oil prices will soon stabilize due to the government's fuel tax reduction effect.

On the 17th, Vice Minister Park appeared on KBS's 'Sunday Diagnosis Live' and said, "There will be no major problems with power supply and demand this summer," adding, "Consumers will soon be able to feel the effect of the government's fuel tax reduction."

He explained, "Current power demand is within the expected range for the second half of the year, and reserve capacity is secured," adding, "The government is very concerned about extreme weather changes, but unless there are special circumstances, I believe there will be no major problems this summer."

Vice Minister Park said that although an increase in electricity rates is necessary due to Korea Electric Power Corporation's (KEPCO) large deficit, inflation must be considered. He stated, "Electricity rates need to be raised gradually, but the inflation situation is tough, so the government is also deeply concerned," adding, "In the fourth quarter, we will review the factors for increase along with the burden of inflation and the impact on people's lives."

He explained that the expansion of KEPCO's deficit is partly due to the previous government's energy transition policy, which increased the proportion of expensive power generation methods such as renewable energy, while overseas fuel prices rose, causing a significant shock.

Vice Minister Park said, "KEPCO's deficit is likely to reach 30 trillion won by the end of this year, and ultimately, the solution is to raise electricity rates," adding, "However, while gradually normalizing electricity rates, KEPCO itself must also make management innovation efforts such as restructuring and corporate bond financing."

Regarding nuclear power policy, he said, "Safety is the top priority in the construction, operation, and maintenance of nuclear power plants," adding, "We will disclose and inform as much as possible to local residents even about matters that do not have fatal safety issues and do not require reporting."

He forecasted that domestic oil prices will show a downward stabilization trend. Vice Minister Park said, "(After the additional fuel tax reduction) gas prices at privately owned gas stations have dropped significantly after one to two weeks," adding, "International oil prices have also stalled worldwide, so consumers will be able to feel the stabilization of oil prices more."