President Lee Jae-myung on the 9th was said to have ordered a broad review of direct support measures for consumers in connection with the surge in petroleum product prices. Kim Yong-beom, presidential policy chief, relayed the president's order at a press briefing after the emergency economic monitoring meeting on the Middle East situation, saying, The president believes that, rather than expanding the fuel tax cut, direct support for consumers hurt by higher oil prices is better.
Accordingly, there is speculation that, as in 2008, a supplementary budget may be drawn up to respond to high oil prices. Policy chief Kim Yong-beom also said, Regarding direct support for consumers, it is only natural that questions will arise about whether the current budget is sufficient.
The 2008 high oil price supplementary budget proceeded when international oil prices topped $130 per Barrel. At the time, international oil prices surged as oil-producing countries failed to keep up with the rapid increase in fuel demand from emerging economies such as China and India. In response, the government temporarily cut the fuel tax by 10% for about 10 months and provided oil price subsidies through the high oil price supplementary budget. The oil price subsidies were paid to workers with total annual pay of 36 million won or less, covering 50% of the increase in fuel costs caused by higher oil prices, up to a cap of 240,000 won. Seventy-eight percent of all workers benefited. The supplementary budget totaled 4.6 trillion won. The funds came from the surplus of the consolidated financial statements.
On this day, international oil prices broke through $100 per Barrel. It was the first time since July 2022 that West Texas Intermediate (WTI) in the United States topped $100 per Barrel during trading. Some analyses say international oil prices could exceed $150 if the Middle East crisis drags on.
On this, policy chief Kim Yong-beom said, In connection with the surge in petroleum product prices, programs that provide direct support to individuals face funding issues and also take time, adding, If this crisis is prolonged, it is only natural that questions will arise about whether the current budget is sufficient.