Gasoline and diesel prices have fallen since the government's maximum price cap on petroleum products took effect recently, but heating oil for agricultural use has continued to rise.
According to the Oil Price Information System (Opinet) on the 22nd, the average retail price of tax-exempt indoor kerosene used to heat greenhouse crops was 1,256.15 won as of the 20th, up 2.5% from the 13th (1,225.65 won), when the price cap took effect. Compared with the recent low on the 3rd (1,115.41 won), it rose 12.6%.
From the 3rd through the 21st, the indoor kerosene price rose for 18 straight days. That contrasts with regular gasoline, diesel, and indoor kerosene that are not tax-exempt, which have fallen by around 100 won from recent peaks. Even among tax-exempt fuels, gasoline and diesel prices fell by 20 to 30 won starting on the 13th, but only indoor kerosene rose by about 35 won during the same period.
The Ministry of Agriculture, Food and Rural Affairs has not provided a clear answer about the situation. Tax-exempt kerosene is also subject to the price cap. An official at the Ministry of Agriculture, Food and Rural Affairs said, "We are checking the causes of the kerosene price increase."
If the price of tax-exempt indoor kerosene rises, it leads to higher operating costs for farms, which could be reflected in agricultural product prices with a time lag. In fact, greenhouse horticulture farms growing cherry tomatoes, greenhouse tangerines, and paprika, as well as flower farms, are suffering from high oil prices.