As the Middle East war drags on, it emerged on the 17th that major countries around the world are implementing policies similar to Korea's oil price cap to respond to the surge in energy prices.
According to the Korea Electric Power Corporation Management Research Institute's report, "Impacts of the Middle East conflict and overseas policy trends," as of late April, 57 countries worldwide, including Korea, are responding to rising energy prices through retail price caps, fuel subsidies, and tax benefits.
In particular, 16 countries, including Japan, Thailand, Hungary, the Czech Republic, China, India, and Mexico, were counted as implementing price cap policies similar to the oil price ceiling.
Japan is paying subsidies to refiners to keep the retail price of gasoline at about 170 yen per liter (about 1,600 won) to manage prices. Thailand is also providing subsidies to keep the price from exceeding 30 baht per liter (about 1,377 won).
Hungary reintroduced a price cap system that it had abolished in the past, and the Czech Republic is intervening in market price setting by implementing a daily price cap, legally limiting the maximum margin for gas stations, and cutting the diesel excise tax. Taiwan is moderating the extent of oil price increases through the state-owned oil company (CPC) and froze retail prices starting in the first week of April. France is also reviewing margin caps along with refiners' voluntary adoption of price caps.
Forty countries are responding through tax benefits such as cuts to fuel taxes. Spain lowered the fuel tax to the European Union (EU) minimum allowed level of 0.33 euros per liter of diesel (about 575 won). Value-added taxes were also cut to 10% from 21%. Germany, Italy, Ireland, and Sweden have also reduced fuel taxes, moving to control prices through state finances.
The United Kingdom delayed a planned fuel tax increase, and the United States introduced a bill to temporarily suspend the federal fuel tax.
Forty countries are also pursuing demand-management measures such as energy-saving policies. Thirty countries have launched conservation campaigns, 25 countries introduced transportation sector operation restrictions, and 14 countries and 13 countries are implementing limits on official business travel and encouraging remote work, respectively. Eight countries were found to be enforcing limits on air-conditioning temperatures.