Do Citizens Using Public Transport Have to Subsidize Benz Owners? ... Controversy Over Unfairness of Petroleum Price Ceiling System

Ahn Cheolsoo: Costs Shifted onto Innocent Citizens
Academics Warn: "Negative Impact on Those Who Conserve Energy"
Blue House Announces: "Implementation Within This Week"

President Lee Jae-myung is speaking at the Emergency Economic Review Meeting on the Middle East situation held at the Blue House on March 9, 2026. Photo by Yonhap News

As the government has announced plans to introduce a maximum price system for petroleum products due to the worsening situation in the Middle East, some are raising concerns about unfairness. There are also worries that artificial government intervention in the market could lead to negative side effects.

On March 10, Ahn Cheolsoo, a lawmaker from the People Power Party, posted on his social media, "With the maximum price system, why should the taxes of people who don't use fuel be used to compensate gas stations for their losses?"

In the post, Assemblyman Ahn pointed out, "President Lee Jaemyung has announced a maximum price system for fuel," and added, "While policy intervention is necessary to prevent the harms of monopolies and to regulate market disorder, the maximum price system is an unfair remedy."

He explained the reason, stating, "It passes on costs to citizens who are not responsible, in order to guarantee the profits of certain businesses."

According to the current Petroleum Business Act, the Minister of Trade, Industry and Energy may set the maximum or minimum price of petroleum sold by refiners, petroleum exporters, or petroleum distributors, if there are significant fluctuations or concerns of such fluctuations in the import or sales prices of petroleum.

In this case, the government can provide financial support to compensate refiners, exporters, or distributors for any losses incurred. The energy industry estimates that if the maximum price system for petroleum is introduced, the amount the government would have to cover could reach several hundred billion won.

Regarding this, Assemblyman Ahn criticized, "Under the maximum price system, the entire population bears the burden of making up for gas station losses," and said, "People who commute by public transportation or have nothing to do with gas stations would be forced to take on the absurd burden of supporting the fuel costs of the refining and gas station industries, as well as some consumers, even though they do not use a single drop of oil themselves."

Ahn further suggested, "There are still alternative policies available, such as fuel tax refunds and releasing strategic oil reserves," and urged, "Stop the inconsistent approach of trying to control gas station prices while shifting the burden onto everyone."

Similar concerns have also been raised in academic circles.

Son Yanghoon, a professor of economics at Incheon National University, stated, "If the petroleum maximum price system is maintained for a long period, the fiscal burden will become unsustainable," and added, "There is no need to rush its introduction when it is unclear when the Middle East situation will be resolved."

Professor Son further commented, "If subsidies are provided using national funds, those who save and conserve energy will be disadvantaged, while those who do not will benefit, which could create undesirable side effects."

Yoo Seunghoon, a professor at the Department of Future Energy Convergence at Seoul National University of Science and Technology, also pointed out, "If the government compensates refiners for their losses, ordinary citizens who use public transportation may raise objections about why they should subsidize people driving German diesel vehicles," stressing that careful consideration is needed before implementing the system.

Meanwhile, immediately following the Emergency Economic Review Meeting on the Middle East situation, presided over by President Lee on March 9 at the Blue House, the Office of the President held a briefing and announced that the government would implement the maximum price system for fuel within this week.

Kim Yongbeom, policy chief at the Office of the President, stated, "We plan to quickly proceed with the relevant procedures, such as establishing the official notice, based on the Petroleum Business Act," and explained, "This is to prevent abnormal pricing of petroleum products and to ensure price predictability."

On the same day, Kim Jeonggwan, Minister of Trade, Industry and Energy, attended the plenary session of the National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee and said of the maximum price system for petroleum products, "We are ready to implement the system," adding, "The specific details will be announced without delay."

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