The government will extend measures such as restricting naphtha exports and banning hoarding of petrochemical feedstocks until Jan. 26 next year.
The Ministry of Trade, Industry and Resources said on the 27th that it issued the "Regulation on Naphtha Export Restrictions and Supply-Demand Adjustment" and the "Regulation on the Prohibition of Hoarding of Petrochemical Feedstocks and Emergency Supply-Demand Adjustment" and will apply them for five months.
The measures were initially set to run until the previous day, but the extension was decided as the crude oil supply crunch continued due to the Middle East war and the blockade of the Strait of Hormuz.
Accordingly, naphtha producers and manufacturers cannot export naphtha without prior approval from the Minister of the Ministry of Trade and Industry (MOTI), must report daily production and inventory levels, and hoarding is strictly restricted.
The Minister of the Ministry of Trade and Industry (MOTI) may, if necessary, issue a compulsory production order or designate companies to receive supplies. However, if supply and demand stabilize, the plan is to lift the measures at any time regardless of the validity period.
The ban on hoarding seven basic petrochemical feedstocks, including ethylene and propylene, will also be extended until January next year. In addition, the Ministry of Trade and Industry (MOTI) resumed on the 24th the strategic oil swap program, which lends out stockpiled oil first before crude secured by refiners is brought in.