The South Korean government announced yesterday the implementation of a temporary fuel price cap system, aimed at alleviating cost burdens amid supply concerns. According to the Yonhap news agency, the announcement regarding this measure was made during a meeting of a ministerial task force tasked with managing market prices, noting that local fuel prices have experienced fluctuations. This marks the first application of a price cap system in Korea since 1997, based on a provision in the Petroleum Business Act that allows the Minister of Industry to set a maximum selling price when oil prices experience severe fluctuations that threaten the country's economic stability. According to the Ministry of Trade, Industry and Resources, the South Korean government, under the price cap system, sets the maximum price for petroleum products supplied by refineries to gas stations and distributors. The ministry explained that the price cap applies to refinery supplies, not to retail prices at gas stations, due to significant regional variations in retail prices and differences in business strategies and operating practices of gas stations.
