Koo Yoonchul: "No Tolerance for Profiteering on Fuel Prices Amid Middle East Crisis"... Considers Maximum Price Cap

March 5th: Special Task Force on Livelihood Prices Management
Domestic Gasoline Prices Surge Amid Middle East Crisis
"Not the Time for Price Hikes to Be Reflected... Zero-Tolerance Response"

Amid the Middle East crisis, gas stations across the country have raised fuel prices and reaped excessive profits, prompting the government to declare that "excessive price hikes are shameless acts" and to announce a strong response, including imposing maximum price caps and other tough administrative measures. The government also plans to closely monitor the prices of other essential items closely tied to people's daily lives, and to enforce the law with zero tolerance for violations.

Koo Yoonchul, Deputy Prime Minister and Minister of Economy and Finance, is speaking at the 3rd meeting of the Task Force on Special Management of Living Expenses Prices held at the Government Seoul Office on the afternoon of the 5th. Ministry of Economy and Finance

Koo Yoonchul, Deputy Prime Minister and Minister of Finance and Economy, made this statement at the 3rd meeting of the Special Task Force on Livelihood Prices Management, held on the afternoon of March 5th at the Government Complex Seoul. The agenda for the meeting included "Trends in Energy Prices and Response Measures Due to the Middle East Situation" and "Measures to Eliminate Market Disruption Taking Advantage of the Middle East Situation."

Following the US and Israel's airstrikes on Iran, the Strait of Hormuz—the main artery for global crude oil shipments—has effectively been shut down, heightening concerns in Korea about a surge in oil prices. Domestic gasoline and diesel prices are currently soaring. As of 10:00 a.m. on this day, the average price of gasoline nationwide was 1,807.1 won per liter, an increase of 29.6 won from the previous day. This is the first time in approximately three years and seven months since August 12, 2022 (1,805.9 won), that the nationwide average price of gasoline has surpassed 1,800 won.

While increased demand due to fears of further price hikes is a factor, given that it typically takes about two weeks for changes in international oil prices to affect domestic prices, there are suspicions that gas stations are engaging in profiteering.

Deputy Prime Minister Koo stated, "Considering the time lag between international price changes and their reflection domestically, it is by no means the time for international oil prices to have a real impact on domestic prices yet," adding, "Despite these circumstances, excessively raising prices to make exorbitant profits is a shameless act that undermines the livelihood of the people," issuing a stern warning.

Deputy Prime Minister Koo emphasized that the government will employ all possible administrative measures, including designating maximum prices for petroleum products, to respond thoroughly. The government is currently operating a joint inspection team for the petroleum market, coordinated by the Ministry of Finance and Economy, Ministry of Trade, Industry and Energy, Fair Trade Commission, National Tax Service, and local governments. Starting tomorrow, it also plans to collaborate with the Korea Petroleum Quality & Distribution Authority, the National Police Agency, and local governments to conduct more than 2,000 special inspections per month.

"Although the market is autonomous, hoarding and price collusion that exploit crisis situations are unmistakably criminal acts," Deputy Prime Minister Koo said. "We will also conduct intensive joint inspections with relevant agencies such as the Fair Trade Commission and the National Tax Service on other items closely related to people's livelihoods, and if violations of the law are found, we will enforce a zero-tolerance policy."

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