Business · Energy & Commodities · 1 hr ago
South Korea keeps fuel price caps unchanged for another four weeks
South Korea's government kept fuel price caps unchanged for a fifth time on November 13.
From November 14, the maximum prices will be 1,784 won per litre for petrol, 1,773 won for diesel and 1,380 won for kerosene, for four weeks.
The caps are intended to limit the burden of fuel costs on households.
International oil prices have fallen recently amid hopes for an end to the conflict between the United States and Iran, but they remain more than $20 a barrel above late-June levels.
Attacks on ships near the Strait of Hormuz have also driven up oil transport costs, adding to concerns about supply.
The government says uncertainty in the Middle East supports keeping the caps in place despite the recent fall in oil prices.
It plans to announce compensation for oil refiners' losses from March to June as early as the end of November, and says funds can be covered within a 4.2 trillion won reserve budget through the third quarter.
South Korea’s Industry Ministry kept the maximum prices for gasoline, diesel and kerosene unchanged for four weeks, starting November 14.
The caps are 1,784 won per litre for gasoline, 1,773 won for diesel and 1,380 won for kerosene.
The ministry said it was maintaining the caps to ease the cost-of-living burden despite a recent fall in international oil prices.
It cited continued uncertainty in the Middle East and higher oil transport costs.
The government plans to announce compensation for refiners’ losses from the scheme’s early months as soon as late November.
- Who
- South Korea’s Industry Ministry.
- What
- It kept maximum prices for gasoline, diesel and kerosene unchanged for another four weeks.
- When
- Announced on November 13; the prices apply from November 14.
- Where
- South Korea.
- Why
- The ministry said prices remain high and that price stability is important for easing the cost-of-living burden, amid uncertainty in the Middle East and higher transport costs.
This story does not have two clearly opposing sides.
The ministry announced the latest round of maximum prices, keeping them at the previous levels.
Brent crude was $96 a barrel and Dubai crude was $90 a barrel, both lower than their average prices the previous month.
The Industry Ministry announced that the maximum prices would remain unchanged.
The unchanged caps took effect for four weeks.
- Gasoline cap
- 1,784 won per litre
- Diesel cap
- 1,773 won per litre
- Kerosene cap
- 1,380 won per litre
- Price freeze
- Fifth consecutive freeze
- Brent crude
- $96 a barrel on November 12
- Loss compensation budget
- 4.2 trillion won contingency budget
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What people are saying
Recent international oil prices have fallen, but oil prices are still at a high level
We can sufficiently cover the compensation for losses through the third quarter within the 4.2 trillion won contingency budget