The government said on the 9th it will freeze the third oil price cap, which takes effect from midnight for two weeks, at the same level as the second. As a result, the maximum wholesale price of gasoline supplied by refiners to gas stations will remain at 1,934 won per liter. Diesel is 1,923 won, and kerosene is 1,530 won.
The move takes into account that international oil prices, which had surged after the Middle East crisis, fell somewhat on the 8th after a cease-fire agreement between the United States and Iran. International oil prices rose from $99.91 per Barrel for Brent on Mar. 25 to $109.3 on the 7th, then fell to $94.8 on the 8th.
International oil prices are typically reflected in domestic wholesale prices with a lag of two to three weeks. As a result, domestic fuel prices that consumers feel could remain high for the time being. In that case, the amount the government would have to compensate refiners for losses could increase by freezing, rather than raising, the oil price cap.
An official at the Ministry of Trade, Industry and Resources said, "We decided to freeze it as the impact of oil prices on everyday living costs continues." The official said, "With the third price designation, gasoline will fall 20 won per liter, diesel 300 won, and kerosene 100 won compared with international prices."