Minister Kim Jeong-Kwan Warns Against Riding Oil Price Hikes... Urges Refiners to Stabilize Prices

Emergency Inspection of Domestic Oil Market Amid Middle East Risks
Government Considers Strategic Oil Reserve Release and Other Response Measures

Kim Jeong-Kag, Minister of Trade, Industry and Energy. The Asia Business Daily Database

As tensions in the Middle East intensify and upward pressure on international oil prices mounts, the government has launched efforts to stabilize domestic petroleum prices. Kim Jeong-Kag, Minister of Trade, Industry and Energy, issued a stern warning against market-disrupting practices that exploit rising oil prices, stating, "The government will respond firmly to actions that undermine price stability for the livelihood of the public."

On the morning of March 9, during a 'Response Headquarters Meeting on the Middle East Situation (Domestic Petroleum Market Check)' held at the Korean Chamber of Commerce and Industry in Seoul, Minister Kim remarked, "While domestic petroleum prices typically follow international oil prices with about a two-week lag, prices have surged sharply in the past few days."

According to Opinet, the oil price information system run by Korea National Oil Corporation, as of March 8, the nationwide average price for diesel stood at 1,918 won per liter, and gasoline at 1,895 won per liter. Compared to two weeks ago, these prices have increased by 327 won and 205 won, respectively.

Minister Kim pointed out, "The public perceives that oil prices rise quickly but fall slowly," and urged, "Please set prices transparently and fairly so that the burden of international oil price increases caused by the recent Middle East situation is not unilaterally passed on to consumers."

The meeting was attended by representatives from the four major refiners—SK Energy, GS Caltex, S-OIL, and Hyundai Oilbank—as well as the Korea National Oil Corporation, Korea Petroleum Association, Korea Oil Distributors Association, and Korea Oil Station Association. They shared recent trends in petroleum supply and demand and pricing, and discussed response measures.

In response to instability in the Middle East, the government issued a 'caution' alert for resource security on March 5. The Ministry of Trade, Industry and Energy is working to secure crude oil supply by diversifying import sources and bringing in overseas production, while also preparing a phased plan to release strategic oil reserves immediately in the event of a supply crisis.

Minister Kim, who returned from the United States the previous day, told reporters, "We are almost fully prepared to respond, considering market conditions and energy supply," adding, "We are also ready to immediately implement a public notice on setting maximum oil prices and related details if necessary."

Additionally, the government announced plans to strengthen joint inspections across ministries and launch special inspections to prevent illegal activities such as collusion, sales of counterfeit oil, and under-measurement of fuel during periods of rising oil prices. The government will closely monitor price trends throughout the refining and distribution stages, including refineries and gas stations, and will take strong action against conduct that disrupts market order.

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