The government decided to extend for two more months, through July, the "ban on hoarding and cornering petroleum products," which punishes refiners and others if they stockpile oil and refuse to sell.
Koo Yun-cheol, Deputy Prime Minister and Minister of Economy and Finance, held a task force (TF) meeting of related ministers on special management of consumer prices on the 7th and said, "To prevent misconduct such as refusing to sell under the pretext of the price ceiling, we will extend the notice banning hoarding and cornering of petroleum products from the original May to July."
He said, "The 'fifth price ceiling,' which will take effect from 12 a.m. on the 8th, will be announced at 7 p.m. after comprehensively considering trends in international oil prices, oil consumption, and fiscal and household burdens," adding, "To enhance the effectiveness of measures such as the ban on hoarding and cornering, we will prepare improvements, including introducing a penalty surcharge and actively operating a reward program."
Under the current Price Stabilization Act, there is a provision allowing imprisonment of up to three years or a fine of up to 100 million won for hoarding and cornering. Related goods can also be confiscated, or if there are no goods to confiscate, the value can be collected. An official at the Ministry of Economy and Finance said, "We will swiftly review measures including strengthening the penalty surcharge."
Meanwhile, the government assessed that the implementation of the petroleum price ceiling lowered the inflation rate by 0.6 percentage point (p) in March and 1.2 p in April. The year-over-year inflation rates in March and April were 2.2% and 2.6%, respectively, and the explanation is that without the price ceiling they would have recorded 2.8% and 3.8%. An official at the Ministry of Economy and Finance said, "Without the price ceiling, as of April, gasoline would have been in the 2,200-won-per-liter (ℓ) range, and diesel would have exceeded 2,800 won."