Government: "No Middle East Risk Yet... Monitoring Unfair Increases in Petroleum Product Prices" (Update)

Ministry of Industry Holds Emergency Oil and Gas Situation Review Meeting on 8th
"Oil Tankers and LNG Ships Operating Normally... No Unusual Developments"
Oil Association Establishes 'Middle East Crisis Task Force'... Coordinating with Situation Room
Korea National Oil Corporation Strengthens Preparedness by Inspecting Storage Bases and Reserves

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] Amid escalating military tensions between the United States and Iran, it has been confirmed on the 8th that the domestic gasoline and diesel prices have not yet reflected the 'Middle East risk.' The government has decided to strengthen inspections to prevent unfair price hikes of petroleum products domestically.

Jung Seung-il, Vice Minister of the Ministry of Trade, Industry and Energy, held an emergency situation assessment meeting on oil and gas with the refining industry at the Korea Trade Insurance Corporation in Seoul on the same day to review the domestic energy supply status in relation to Iran's attack on the U.S. military base in Iraq.

At the meeting, our refining industry and Korea Gas Corporation stated, "So far, there have been no disruptions in the transportation of crude oil and LNG coming from the Middle East to Korea, but we are closely monitoring the situation in the Middle East."

As of 11 a.m. that day, all 35 oil tankers and 10 LNG carriers traveling to and from the Middle East were operating normally, with no unusual developments confirmed.

Domestic gasoline and diesel prices (average nationwide gas station prices) as of the 7th were 1,565.06 KRW and 1,396.28 KRW per liter, respectively, indicating that the Middle East risk has not yet been reflected.

[Image source=Yonhap News]

However, international oil prices have been rising immediately after Iran's attack on the U.S. military base in Iraq. Meeting participants agreed on the need to prepare for the possibility of increased uncertainty going forward.

The government plans to strengthen monitoring and inspections to prevent unfair price hikes of domestic petroleum products caused by anxiety or other factors. It usually takes about two weeks for changes in international oil prices or international petroleum product prices to be reflected in domestic consumer prices.

Vice Minister Jung said, "A serious situation continues in the Middle East region, which accounts for a large portion of Korea's crude oil and LNG imports," adding, "The government, related agencies, and relevant industries will establish a joint all-out response system."

The Oil Supply Situation Room, composed of officials from the Ministry of Trade, Industry and Energy and the Korea National Oil Corporation, is monitoring local developments, oil prices, supply and demand status, and tanker operations in real time. The Korea Petroleum Association has established a 'Middle East Crisis Countermeasures Team' to oversee industry responses together with the Oil Supply Situation Room.

The Korea National Oil Corporation is conducting emergency safety inspections of reserve oil and nine nationwide reserve bases and is strengthening readiness to immediately release reserve oil if the supply situation worsens.

Private refiners are preparing detailed emergency response plans, including securing alternative import volumes, and have pledged to cooperate with the government to stabilize domestic petroleum product prices.

This content was produced with the assistance of AI translation services.