The government said it will mobilize all available administrative tools, including considering setting maximum prices and investigating collusion, to respond to a surge in domestic fuel prices driven by instability in the Middle East. The government plans to act after prices at some gas stations jumped before the recent rise in international oil prices was fully reflected at home.
Koo Yun-cheol, deputy prime minister for the economy and Minister of Strategy and Finance, said at the 8th extraordinary Cabinet meeting on the 5th that "we are seeing phenomena such as excessive increases in gasoline prices," adding, "through intensive inspections, we will sternly crack down on collusion or unfair practices related to items under special management for livelihood prices," in a report to President Lee Jae-myung.
Koo said, "Under Article 23 of the Petroleum and Petroleum Alternative Fuel Business Act, we can designate a maximum price when prices surge," adding, "based on the results of this afternoon's price inspection, if prices are excessively high, we will consider even designating a maximum price by public notice."
A collusion investigation will proceed in parallel. He said, "The Korea Fair Trade Commission will investigate whether there is collusion," and explained, "If gas stations with high prices are found to have colluded, price readjustment measures are also possible." He added, "Under the Price Stabilization Act, if hoarding or cornering occurs, corrective measures or even criminal penalties are possible," and said, "The government will mobilize all administrative means at its disposal."
President Lee said, "The public is showing a high level of civic consciousness without panic buying, and we must respond sternly to acts that try to profit from the confusion."
Ju Biung-ghi, chair of the Korea Fair Trade Commission, said, "We are operating regional offices nationwide to conduct price monitoring," adding, "We will swiftly launch investigations focusing on areas where prices have risen significantly."
In addition, the government said it will conduct unannounced on-site inspections at gas stations and take strict administrative action against short-selling by quantity or sales of fake petroleum. The government plans to hold a related ministers' meeting this afternoon to review trends in petroleum prices and discuss specific stabilization measures.