As international oil prices surged due to the war fallout among the United States, Israel, and Iran, the domestic average gasoline price broke through 1,900 won per liter (ℓ). With concerns rising that the era of 2,000-won fuel may be dawning, the government is also reviewing the introduction of a "designated maximum oil price" for the first time in about 30 years.
According to Opinet, the oil price information system of the Korea National Oil Corporation (KNOC), as of 12 p.m. on the 9th, the domestic average gasoline price was tallied at 1,900.65 won per liter. It rose 5.33 won from the previous day, surpassing the 1,900-won level for the first time in about 3 years and 8 months since July 2022. The diesel price also increased 6.11 won from the previous day to 1,923.84 won per liter.
The average gasoline price in Seoul rose 3.29 won from the previous day to 1,949.02 won per liter. The diesel price likewise climbed 4.18 won from the previous day to 1,971.37 won.
At 7:26 a.m. Korea time, West Texas Intermediate (WTI) futures traded on the New York Mercantile Exchange topped $100. Brent crude traded on the London ICE Futures Exchange also surpassed $100.
Given that it takes a lag of two to three weeks for changes in international oil prices to be reflected in domestic fuel prices, it suggests the upward trend is likely to continue. As of this day, domestic fuel prices have risen for nine consecutive days.
The government also moved to draw up measures. President Lee Jae-myung held an emergency economic review meeting on the Middle East situation at the Blue House in the morning and said, "The deepening crisis in the Middle East is acting as a significant burden on our economy, which has high dependence on global trade and energy imports from the Middle East," adding, "Since it is difficult to predict how the situation will unfold, the government must prepare preemptive response measures with a sense of urgency, keeping even the worst-case scenario in mind."
In the process, the president said, "For petroleum products that have recently increased excessively, the 'maximum price system' should be introduced swiftly and implemented boldly," and urged, "Given that the burden of inflation caused by rising energy prices hits ordinary people first and hardest, meticulous and effective measures must be prepared."
The designated maximum oil price system allows the government to directly set the maximum sales prices for products such as gasoline and diesel, and violations can result in imprisonment or fines, making it a powerful tool for market control. Since oil price liberalization in 1997, it has effectively never been used.
The government is also said to be reviewing additional responses, including cracking down on unfair transactions, expanding fuel tax cuts, and releasing strategic reserves. It plans to announce further measures based on the Middle East situation and the trend in international oil prices.