Industry Minister Kim Jung-kwan has urged major oil refiners to avoid unjustified price increases amidst the recent surge in global crude oil prices due to the ongoing Middle East situation. Kim emphasized the importance of transparent and equitable petroleum pricing to prevent consumers from bearing the brunt of escalating international oil prices. He made this call during a meeting with representatives from oil refinery industry and related authorities in Seoul.
During the meeting, attended by officials from SK Energy, GS Caltex, S-Oil, and HD Hyundai Oil Bank, Kim highlighted that while domestic oil prices typically adjust in response to global oil price changes over a two-week period, recent events have led to a rapid escalation in prices in South Korea. The minister cautioned against exploiting the spike in international oil prices to the detriment of efforts aimed at stabilizing people’s livelihoods, warning of serious consequences for such actions.
The average gasoline price in Seoul surpassed 1,900 won ($1.28) per liter for the first time in nearly four years on Friday, further climbing to 1,945 won by Sunday, as reported by the Korea National Oil Corp. Responding to public backlash, the Korea Oil Station Association attributed the recent surge in domestic fuel prices primarily to supply price hikes by oil refineries.
In light of the ongoing turmoil in the Middle East, the government issued a preemptive alert last week to address potential resource crises and volatility in the energy market. Efforts are underway to secure additional oil supplies from regions outside the Middle East and develop a comprehensive strategy for the potential release of oil reserves. Additionally, the government is cracking down on unfair market practices in the energy sector and is considering implementing a price cap system for oil for the first time in nearly three decades.
