Gyeongsangnam-do Proposes Three Major Policies to Stabilize Oil Prices to the Government ... Urges Swift Implementation of Price Ceiling System

On March 11, the Gyeongsangnam-do Provincial Government announced that it had proposed three policies to the central government aimed at stabilizing skyrocketing oil prices—caused by escalating tensions in the Middle East—and protecting the local economy.

First, the provincial government called for the swift implementation of a maximum price system for petroleum products.

This system allows the government to set a price ceiling to prevent the prices of domestic petroleum products, such as gasoline, diesel, and kerosene, from rising beyond a certain level when there is an abnormal surge.

Violating this regulation may result in imprisonment for up to two years or a fine of up to 20 million won, and any excess profits may be confiscated by the government.

Gyeongnam Provincial Government Office. Photo by Se-ryeong Lee

The provincial government also requested the establishment of measures to stabilize the operations of small-scale gas stations, in the form of financial support, to be implemented in parallel with the maximum price system for petroleum products.

Additionally, Gyeongsangnam-do proposed that the government further increase the scope of fuel tax reductions.

Previously, in order to assess the impact of soaring oil prices on the local economy and to prevent unfair business practices, the provincial government formed a special inspection team, which has been in operation since March 6.

After comprehensively reviewing feedback gathered on-site, the provincial government determined that an immediate response at the national level was necessary and submitted these three proposals to the Ministry of Economy and Finance and the Ministry of Trade, Industry and Energy.

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