Business · Economy · 2 hrs ago
South Korea’s Oil Price Cap Cut Petrol Prices by Up to 239 Won per Litre
South Korea introduced a cap on refinery prices in March after the US-Iran war pushed oil prices higher.
The measure limits the prices refineries can charge for fuel supplied to petrol stations.
An analysis found the cap lowered regular petrol prices by as much as 239.48 won per litre after its seventh round or later.
The estimated effect was 45.75 won per litre in the first round.
The policy has helped steady petrol prices, but keeping it in place for longer could add to government spending and distort energy use, the analysis warned.
The report says an exit strategy is needed, taking international oil prices and exchange rates into account.
South Korea’s oil price cap reduced regular petrol prices by an estimated 239.48 won per litre from its seventh round onward, according to a Korea Institute for Industrial Economics and Trade report.
The government introduced the cap on refinery supply prices on March 13, after oil prices rose amid the effects of the US-Iran war.
The estimated price-stabilising effect grew from 45.75 won per litre in the first round to 239.48 won from the seventh round onward.
The report also raised concerns about the scheme’s fiscal burden and possible market distortions.
It said an exit strategy should consider international oil prices and exchange rates.
- Who
- South Korea’s government introduced the oil price cap; the Korea Institute for Industrial Economics and Trade analysed its effects.
- What
- The cap on refinery supply prices was estimated to have lowered regular petrol prices by up to 239.48 won per litre.
- When
- The cap began on March 13; the report was published on October 24, 2026.
- Where
- South Korea.
- Why
- The government introduced the measure after oil prices surged amid the effects of the US-Iran war.
This story does not have two clearly opposing sides.
The government held a ministerial meeting on measures to stabilise petroleum product prices, according to the article.
The government introduced a cap on refinery supply prices.
A report by the Korea Institute for Industrial Economics and Trade said the cap’s estimated price-stabilising effect reached 239.48 won per litre from the seventh round onward.
- First round effect
- 45.75 won per litre
- Effect from seventh round
- 239.48 won per litre
- Introduction date
- March 13
- Report outlet
- Korea Institute for Industrial Economics and Trade
- Publication date
- October 24, 2026