Petroleum Industry Backs Down After President Lee's Criticism: "Will Work to Prevent Rapid Oil Price Hikes"

International Oil Prices Surge Amid Middle East Tensions
Three Major Petroleum Organizations Pledge to Cooperate for Domestic Price Stability

As international oil prices surge due to escalating tensions in the Middle East, the domestic petroleum industry has stated its intention to cooperate in ensuring that the increase in oil prices is not reflected too abruptly at gas stations.

On the 6th, due to the impact of the war between the United States and Iran, international oil prices are rising, and gasoline prices are displayed at a gas station in Seoul. 2026.03.06 Photo by Dongju Yoon

The three major petroleum organizations—Korea Petroleum Association, Korea Oil Distributors Association, and Korea Oil Station Association—announced that they will strengthen industry-wide efforts so that the rise in international oil prices is not rapidly reflected in domestic gas station prices.

The Korea Petroleum Association explained that domestic refiners will actively cooperate to ensure stable supply of petroleum products and price stability in the country, in response to the government's activation of the 'Attention' level in the crude oil and gas resource security crisis alert, and to participate in the energy supply and demand response system.

Recently, the Singapore international gasoline price, which serves as the basis for domestic oil pricing, rose by $26.64 per barrel to $106.28 per barrel as of March 5 following the Middle East crisis, while the international diesel price surged by $60.28 per barrel to $153.18 per barrel.

The association noted that if these international price increases are reflected all at once in domestic prices, the burden on the public could increase due to higher inflation. Therefore, they will work to ensure that price increases are reflected in gas station prices gradually and in stages.

The refining industry emphasized that it has consistently made various efforts to stabilize oil prices. For example, after the outbreak of the Russia-Ukraine war, when the fuel tax was reduced, refiners immediately reflected the tax cut at company-operated gas stations despite incurring losses, thereby cooperating with price stabilization efforts.

Going forward, refiners plan to transparently disclose supply prices and focus on maintaining order in the petroleum market.

Additionally, the petroleum association stated that it has held several review meetings between the Ministry of Trade, Industry and Energy and the refining industry to ensure stable energy supply and oil price stability, maintaining close communication. Even amid supply and demand crises, they intend to provide sufficient volumes to distributors and gas stations to prevent a sharp increase in gas station prices.

The Korea Oil Distributors Association, Korea Oil Station Association, and other distribution organizations also stated that they would actively cooperate in ensuring stable petroleum supply and manage the extent to which price increases are reflected during periods of sharp oil price hikes by providing guidance and requesting cooperation from petroleum agencies and gas station operators.

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