Minister Kim Jeong-Kwan Warns of Strict Punishment for Market Disruption Amid Rising Oil Prices (Comprehensive)

Government Conducts Emergency Oil Market Review amid Soaring International Prices

Preparations Underway for Release of Oil Reserves

Kim Jeong-Kag, Minister of Trade, Industry and Energy (far right), is delivering a opening remark at the Middle East Situation Response Headquarters meeting held on the morning of the 9th at the main conference room of the Korean Chamber of Commerce and Industry in Jung-gu, Seoul. Ministry of Trade, Industry and Energy.

The government has begun efforts to stabilize domestic oil prices amid growing upward pressure on international oil prices due to the worsening situation in the Middle East. Kim Jeong-Kag, Minister of Trade, Industry and Energy, issued a warning against market-disrupting actions that take advantage of rising oil prices, stating, "The government will respond strictly to any actions that run counter to the stabilization of consumer prices."

At the "Middle East Situation Response Headquarters Meeting (Domestic Oil Market Review)" held on the 9th at the Korean Chamber of Commerce and Industry in Seoul, Minister Kim said, "While domestic oil prices typically follow international oil prices with a lag of about two weeks, there has been a sharp rise in domestic prices over the past few days."

With tensions escalating in the Middle East, international oil prices are rising rapidly. The prices of Brent, WTI, and Dubai crude oil, which were around 70 dollars per barrel at the end of last month, have risen to the 90-dollar range since the beginning of this month, with Dubai crude nearing the 100-dollar mark.

Domestic oil prices are also soaring. According to Opinet, the oil price information system of Korea National Oil Corporation, as of the 8th, the nationwide average diesel price was 1,918 won per liter, and gasoline was 1,895 won per liter. It was also reported that at some gas stations, gasoline prices rose by more than 500 won and diesel by more than 700 won per liter over the course of a week.

Minister Kim pointed out, "The public perceives that oil prices rise quickly but fall slowly," and urged the refining industry to "ensure that the burden of rising international oil prices due to the recent Middle East situation is not passed on to consumers unilaterally, by setting transparent and fair prices."

The meeting was attended by the four major refiners—SK Energy, GS Caltex, S-OIL, and Hyundai Oilbank—as well as Korea National Oil Corporation, the Korea Petroleum Association, the Petroleum Distributors Association, and the Gas Station Association. They shared information on oil supply and price trends and discussed response measures.

In response to instability in the Middle East, the government issued a "concern" level resource security crisis alert on the 5th. The Ministry of Trade, Industry and Energy plans to secure crude oil supplies by obtaining alternative sources and importing overseas production, while also preparing a phased plan for releasing oil reserves that can be utilized immediately in the event of a supply crisis.

The government will also strengthen crackdowns on market-disrupting activities that may occur during periods of rising oil prices. An inter-ministerial oil market inspection team is focusing on cracking down on illegal activities such as short deliveries, the sale of counterfeit oil, price collusion, and tax evasion. In addition, about 2,000 gas stations nationwide are subject to monthly special on-site inspections, including undercover checks, in cooperation with public institutions.

After returning from a visit to the United States the previous day, Minister Kim told reporters, "The most important issues right now are securing crude oil supply and stabilizing prices, and it is crucial that related policies function smoothly to minimize the burden on businesses and the national economy." He added, "Preparations for responding to the market situation and fuel supply conditions are nearly complete, and we are ready to implement announcements and details related to setting a maximum oil price immediately if necessary."

He also stated, "If necessary, we are prepared to pursue institutional improvements such as expanding private reserves, and we are preparing appropriate measures while monitoring developments in the Middle East."

The government urged not only refiners but also distributors to make efforts to stabilize prices. Minister Kim asked refiners to manage wholesale prices for gas stations in a stable manner and requested that budget gas stations operated by Korea National Oil Corporation, Korea Expressway Corporation, and NongHyup Agribusiness Group maintain prices below the national average. He also called on gas stations and petroleum distributors to ensure that there are no excessive price hikes and requested that industry associations play a guiding role in this regard.

Minister Kim concluded, "Since oil prices have a significant impact on consumer prices, the public and private sectors must make every effort to stabilize oil prices. As people are already feeling the burden of the Middle East crisis, we urge the industry to share this burden together."

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