Prime Minister Kim: "Part of Oil Price Ceiling Covered by Public Taxes... Energy Conservation Is Crucial"

Prime Minister Kim Minseok addressed concerns raised by some that the petroleum price ceiling policy may actually increase oil consumption, stating on the 15th, "Some of the costs associated with implementing the price ceiling policy are being covered by public taxes." He called on the public to participate in energy conservation efforts.

Prime Minister Kim Minseok is speaking at the 5th Emergency Economic Headquarters meeting held at the Government Seoul Building in Jongno-gu, Seoul on April 15, 2026. Photo by Yonhap News

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On the morning of April 15, at the Government Complex Seoul, Prime Minister Kim held the 5th Emergency Economic Headquarters meeting and emphasized, "Energy conservation is a very important task, especially as we prepare for a prolonged period of high oil prices."

After the Middle East crisis caused international oil prices to surge, the government set a ceiling on domestic fuel prices to control them. The gap between the production cost and the controlled price is compensated with public finances. In other words, the longer the war continues, the greater the fiscal burden on the government will be. The previous day, President Lee Jaemyung also stated at a cabinet meeting, "In some cases, (fuel) consumption is actually increasing," and added, "The petroleum price ceiling set by the government is not a normal price."

Prime Minister Kim explained, "This is a system to protect ordinary citizens and businesses struggling due to rising oil prices and to mitigate the overall economic impact." He also urged, "We ask that both companies and the public actively participate in energy conservation."

Regarding the Middle East situation, Prime Minister Kim remarked, "Although a ceasefire agreement has been reached between the United States and Iran, it remains a crisis situation where armed conflict could resume at any time." He stressed, "The emergency economic response system must continue to operate firmly." He instructed each ministry's ministers, "You must ensure the smooth implementation of the wartime supplementary budget, including payment of support funds for damages caused by high oil prices," and further directed, "Establish concrete execution plans for your respective wartime supplementary budgets and directly monitor the implementation process in real time."

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