The government decided to lower the crude oil resource security alert by one level, from "warning" to "caution." The move comes as concerns about crude supply shortages eased amid talks to end the Middle East war.
The Ministry of Trade, Industry and Resources reported the plan at the "28th Cabinet meeting and 13th emergency economic review meeting" on the 30th. Vice Minister Mun Sinhak of the Ministry of Trade, Industry and Resources said, "Taking into account the supply-demand stability, public inconvenience caused by the alert, and the economic ripple effects, we will lower the resource security alert."
Under the Special Act on National Resource Security, the crude oil resource security alert operates on four levels: "interest-caution-warning-severe." It was raised to level 3, "warning," on Apr. 2. Vice Minister Mun explained, "For crude oil, we will lower the current 'warning' level to level 2, 'caution,' and for liquefied natural gas (LNG), we plan to fully lift the caution level." With this adjustment, the LNG alert itself will be lifted.
In line with the lower alert, some of the supply stabilization measures implemented so far will also be wound down. Vice Minister Mun said, "As supply-demand conditions have improved, measures such as expanded support for crude freight differentials, stock drawdowns of strategic oil reserves, and expanded support for substitute imports of naphtha will be in place only through today."
The lower alert will also ease vehicle operation restrictions closely tied to daily life. Vice Minister Mun said, "The Ministry of Climate, Energy and Environment will relax the odd-even system for public vehicles to a day-of-week rotation and lift the day-of-week rotation at public parking lots." With the shift from the odd-even (two-group) system that restricted public agency vehicles every other day to a five-group day-of-week system, operating constraints will be greatly reduced.
As a result, remaining Middle East crisis response measures will be pared down to naphtha and petrochemical supply measures and a price ceiling system.
The government plans to check whether the price-cut effect from the price ceiling system is being properly passed on to consumers.
Vice Minister Mun said, "To ensure the impact of the price ceiling system is quickly reflected in the market, we will strengthen market monitoring together with the government, consumer groups, and public institutions." As mid- to long-term tasks, he added, "We will promptly pursue, through public-private cooperation, diversification of import sources, reinforcement of stockpiling capacity, and global resource cooperation to strengthen industrial resource security."