Government Deliberates Fourth Oil Price Cap... Prime Minister Kim: "Decision Will Be Made Prudently"

Prime Minister Kim Minseok stated on April 22, ahead of the implementation of the fourth petroleum price ceiling, "We will carefully and thoroughly consider various opinions before deciding whether to proceed with it." Following the surge in oil prices after the Middle East crisis, the government has been adjusting retail prices by using fiscal resources to compensate for the increase. However, there have been concerns that this approach has actually led to greater fuel consumption. As the crisis persists, the fiscal burden of compensating the price difference is also steadily increasing.

Prime Minister Kim Minseok is speaking at the Emergency Economic Headquarters meeting held at the Government Complex Seoul in Jongno-gu, Seoul on April 22, 2026. Photo by Jo Yongjun

On the morning of April 22, Prime Minister Kim held the 9th Emergency Economic Headquarters meeting at the Government Complex Seoul and said, "The third petroleum price ceiling expires tomorrow, and a decision on whether to implement the fourth round will be made soon." The government plans to announce the fourth petroleum price ceiling on April 24.

However, instead of a sudden abolition of the price ceiling system, it is highly likely that the range of the ceiling will be somewhat relaxed. Prime Minister Kim said, "It is clear that the price ceiling system has had positive effects, such as preventing a sharp rise in prices, alleviating a contraction in consumption, and cushioning the impact on groups sensitive to oil prices, including truck drivers." He added, "Small and medium-sized enterprises and vulnerable groups in daily life are the ones who most directly and severely feel the impact of the prolonged Middle East war. The government will actively communicate and take steps to ensure that the supplementary budget provides practical help to small businesses and ordinary people."

Prime Minister Kim also said, "The COVID-19 crisis served as an opportunity to improve our disease control system and actively promote the bio-pharmaceutical industry. I ask that, through this current crisis as well, you identify tasks that will help us move away from an economy dependent on traditional fossil fuels and advance change and innovation, including diversifying supply chains, transitioning to new energy sources, and expanding the circular economy."

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