Business · Energy & Commodities · 2 hrs ago
South Korea keeps fuel price caps unchanged for a fourth time
South Korea has kept fuel price caps unchanged for a fourth consecutive round, setting limits of 1,784 won per litre for petrol, 1,773 won for diesel and 1,380 won for kerosene.
The caps limit the prices refiners can charge for fuel supplied in the country.
Refiners say the gap between the capped prices and international fuel prices could leave them with more than 7 trillion won in accumulated losses.
The government has begun checking companies’ cost records to decide how much compensation is due, with payments targeted before the end of the year.
Calculating the amount is complicated because the review must separate domestic sales from exports and account for differences in companies’ costs and accounting.
The government has set aside 4.2 trillion won in emergency funds, while its budget plan includes 1.4497 trillion won for compensation for losses in the fourth quarter.
The caps help limit costs for consumers, but keeping them in place increases pressure on public finances; a price-fixing investigation involving refiners may also complicate compensation discussions.
South Korea will keep its cap on petroleum product prices unchanged for a fourth consecutive period.
The 11th cap sets maximum prices of 1,784 won per litre for petrol, 1,773 won for diesel and 1,380 won for kerosene.
The prices will apply for four weeks from midnight on October 17, the Ministry of Trade, Industry and Energy said.
The government cited high international oil prices, household cost pressures and domestic supply conditions in its decision.
Refiners say their accumulated losses could exceed 7 trillion won, while the government is reviewing compensation claims.
- Who
- South Korea’s Ministry of Trade, Industry and Energy set the caps; domestic oil refiners are affected.
- What
- The government kept the maximum prices for petrol, diesel and kerosene unchanged for a fourth consecutive period.
- When
- Announced on October 16, 2026, and effective for four weeks from midnight on October 17.
- Where
- South Korea.
- Why
- The government said it considered high international oil prices, household cost pressures and domestic supply conditions.
South Korean government
Domestic oil refiners
Price caps
South Korean government
The government kept the caps unchanged, citing household cost pressures and supply conditions.
Domestic oil refiners
Refiners say the prolonged caps are contributing to substantial losses.
Exports
South Korean government
The government said it would explore export-volume measures with the industry, provided domestic supply is not affected.
Domestic oil refiners
Refiners have asked for export restrictions to be eased, saying the limits constrain their ability to benefit from higher international prices.
Compensation
South Korean government
The government is reviewing refiners’ cost submissions to determine compensation.
Domestic oil refiners
Refiners differ over how costs and margins should be calculated and have sought recognition for supporting domestic supply.
The government cut the seventh price caps by 150 won per litre for each fuel type.
Brent crude was 105.9 dollars per barrel, Dubai crude was 107.0 dollars and West Texas Intermediate was 98.0 dollars.
The Ministry of Trade, Industry and Energy announced that the 11th price caps would match the previous period’s prices.
The unchanged caps took effect for four weeks from midnight.
- Petrol cap
- 1,784 won per litre
- Diesel cap
- 1,773 won per litre
- Kerosene cap
- 1,380 won per litre
- Duration
- Four weeks from midnight on October 17, 2026
- Refiners’ estimated accumulated losses
- More than 7 trillion won
- Government reserve funds
- 4.2 trillion won allocated in a supplementary budget
What people are saying
We will explore ways to manage export volumes while communicating with the industry, within a range that does not cause problems for domestic supply.
Sales in the first and second weeks of October fell by 5.5%.
There are so many issues surrounding the calculation of costs and margins that it will take considerable time to determine the final compensation amount.
Companies need support measures that allow them to secure financial capacity in advance so they can prepare for expected shocks.