The government said it will freeze the oil price ceiling at the current level for four weeks starting at midnight on the 22nd. Accordingly, the ceiling, based on refiners' supply prices, is 1,784 won per liter (L) for gasoline, 1,773 won for diesel, and 1,380 won for kerosene.
The Ministry of Trade, Industry and Resources said on the 21st that it decided to freeze the price ceiling "while closely monitoring international oil prices and considering the recent burden on everyday consumer prices."
According to the Ministry of Trade and Industry (MOTI), international oil prices, which fell to around $80 per barrel earlier this month on hopes for an end to the conflict, have recently risen into the $90 range as the Middle East war remains deadlocked. As of the 20th, Brent crude was $93.8 per barrel, Dubai crude was $95.6, and West Texas Intermediate (WTI) was $87.8. Compared with the first week of the month (Brent $81.7, Dubai $88.6, WTI $82.5), prices have jumped by as much as $12 in three weeks.
An official at the Ministry of Trade and Industry (MOTI) said, "Even after the 60-day term of the U.S.-Iran end-of-war memorandum of understanding (MOU) signed in June expired, the standoff between the two countries has continued, increasing uncertainty in the Middle East again."
The official added, "There is a possibility that international oil prices could rise further, but the current level is similar to when the previous ceiling was set," and "we also took into comprehensive account the increased burden on people's livelihoods due to recent abnormal weather such as heat waves and torrential rains."
Domestic gas station prices have been declining continuously since June 27, when the ceiling was first cut by 150 won per liter. As of the 20th, the nationwide average is 1,862 won for gasoline and 1,845 won for diesel.
The government plans to operate the ceiling system flexibly, taking into comprehensive account the Middle East situation, oil supply and demand, prices and household burdens, and the need for demand management.