Government Requests Oil Industry to Refrain from Price Increases Exceeding International Oil Price Rise

Ministry of Industry Holds Oil Market Inspection Meeting

As the government decided to extend the fuel tax reduction measure until October this year, it urged the petroleum distribution industry to 'refrain from raising prices' so that the public can feel the effect.

On the 18th, the Ministry of Trade, Industry and Energy held a 'Petroleum Market Inspection Meeting' to check the current prices of petroleum products such as gasoline and diesel and whether the fuel tax reduction has been reflected, together with the industry.

At the meeting, Yoo Beop-min, Director General of the Resource Industry Policy Bureau at the Ministry of Trade, Industry and Energy, said, "Since the government decided to extend the fuel tax reduction measure prioritizing the burden on the public, we ask the industry to work together to stabilize domestic oil prices accordingly" and requested restraint from price increases exceeding the rise in international oil prices.

Earlier, on the 16th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho announced, "Considering the upward trend of international oil prices, the fuel tax reduction measure will be extended for two months until the end of October." Accordingly, on the 17th, the Ministry of Economy and Finance announced the legislative notice of the amendment bills to the 'Transportation, Energy and Environment Tax Act Enforcement Decree' and the 'Individual Consumption Tax Act Enforcement Decree' reflecting this. As a result, the price reduction effect of 205 KRW per liter (ℓ) for gasoline, 212 KRW for diesel, and 73 KRW for LPG butane compared to the pre-reduction tax rate will be maintained until October.

Director Yoo said, "The government will continue close price monitoring until oil prices stabilize," and added, "We ask Eoljuka gas stations to take a more leading role in price stabilization."

As international oil prices surged and gasoline prices jumped again, the government is facing increasing concerns ahead of the end of the fuel tax reduction measure. According to Korea National Oil Corporation's 'Opinet' on the 14th, the average nationwide gasoline selling price as of the previous day rose by 41.03 won per liter compared to a week earlier, reaching 1,717.67 won per liter, climbing back to the 1,700 won range for the first time in about 10 months. The average diesel selling price also recorded 1,568.97 won per liter, up 72.23 won from the previous week. The photo shows the fuel price information board at a gas station in Seoul on the same day. Photo by Kim Hyun-min kimhyun81@