Seoul: The South Korean government on Friday announced the continuation of its existing price ceilings for fuel, maintaining them for a second consecutive period amidst ongoing high oil prices and enduring tensions in West Asia, as reported by Yonhap News Agency. The decision aims to stabilize domestic fuel costs amidst global uncertainties.

According to Nam News Network, the Ministry of Trade, Industry and Energy has decided to keep the maximum prices for regular petrol, diesel, and kerosene supplied by local refiners to petrol stations at 1,784 won (US$1.30), 1,773 won, and 1,380 won per litre, respectively. This pricing will remain in effect for the next four weeks starting Saturday. The government has upheld these price ceilings for the past eight weeks, following a reduction to the current levels on June 26.

The decision to extend the current price caps comes in response to fluctuating international oil prices. While prices dropped to around US$70 per barrel in early August, Brent crude surged to US$90 by August 20, driven by the continuing stalemate in West Asia. This situation prompted the government to sustain the price ceilings to mitigate potential domestic economic impacts, as stated by a ministry official.

The fuel price caps were initially introduced in mid-March to address domestic price stability issues amid supply chain disruptions caused by the ongoing conflict between the United States and Iran in West Asia. The South Korean government intends to adjust these emergency measures as necessary, closely observing the situation in West Asia and its implications for the South Korean economy.