Government Strengthens Response to High Oil Prices... Holds Weekly Review Meetings with Four Major Refining Companies

'Petroleum Market Inspection Meeting' Held... Participation of Four Refining Companies and Discount Suppliers
Ministry of Trade, Industry and Energy "Oil Prices Directly Affect Public Burden... Requesting Cooperation from Refining Companies"

On the 25th of last month, when domestic fuel prices such as gasoline and diesel continued their soaring trend due to the sharp rise in international oil prices, fuel price information was displayed at a gas station in downtown Seoul. According to the Korea National Oil Corporation's oil price information system, Opinet, the average price of diesel sold at gas stations nationwide the previous day was 2,000.93 KRW per liter. This is the first time since April 2008, when nationwide sales price statistics began to be compiled, that the diesel price has exceeded 2,000 KRW. Photo by Mun Honam munonam@

[Asia Economy Sejong=Reporter Lee Jun-hyung] The government will hold weekly inspection meetings with the four major oil refiners and other industry players to strengthen its response to high oil prices. Through these inspection meetings, the government plans to continuously monitor domestic and international oil price trends and seek measures to stabilize prices.

The Ministry of Trade, Industry and Energy announced on the 2nd that it held the "Oil Market Inspection Meeting for Livelihood Stability" at the Korea Chamber of Commerce and Industry in Seoul. Cha Yubeom, Director General of the Resource Industry Policy Bureau at the Ministry, presided over the meeting, which was held as a follow-up to the "Top 10 Livelihood Stabilization Projects" announced at the first Economic Ministers' Meeting on the 30th of last month. The goal is to explore measures to stabilize prices of petroleum products such as gasoline and diesel as part of the government's efforts to stabilize livelihoods. Participants included the four major refiners such as SK Energy and S-Oil, as well as the Korea Petroleum Association and discount fuel suppliers.

The Korea National Oil Corporation analyzed at the meeting that recent international oil prices and petroleum product prices have shown high volatility. This is due to the prolonged Ukraine crisis and increased supply instability factors such as the European Union (EU) recently strengthening sanctions on Russian oil. The increase in petroleum product demand in the United States during the holiday season is also related to the volatility of oil prices.

As a result, domestic gasoline and diesel prices are also soaring. Since the 26th of last month, gasoline and diesel prices have each exceeded 2,000 won per liter. According to the Korea National Oil Corporation, as of the previous day, the selling prices of gasoline and diesel were 2,015.4 won and 2,009.5 won per liter, respectively. A representative from the Korea National Oil Corporation said, "However, international diesel prices have recently started to decline," adding, "Domestic prices are also on a downward trend, so some gas stations are expected to adjust diesel prices downward."

The refining industry stated that it is not easy to stabilize domestic petroleum prices due to the sharp rise in international petroleum product prices. However, they expressed their willingness to cooperate with government measures to stabilize livelihoods as much as possible. Discount fuel suppliers such as the Korea National Oil Corporation, NongHyup, and Korea Expressway Corporation also plan to consult with gas station operators to immediately reflect the reduction in diesel supply prices.

The Ministry of Trade, Industry and Energy plans to hold the oil market inspection meetings at least once a week. The ministry has already been holding regular meetings with related industries since last month after expanding the fuel tax reduction from the existing 20% to 30% on the 1st.

Director General Cha said, "Since the rise in petroleum product prices directly translates into a burden on the public, we hope that refiners will cooperate as much as possible in stabilizing prices for the sake of livelihood stability," adding, "Diesel supply prices have recently been declining, so we want discount fuel suppliers to proactively reflect the reduction in supply prices."

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