Industry Ministry asks local oil refiners to avoid price hikes

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Industry Ministry asks local oil refiners to avoid price hikes

Published: 29 Oct. 2024, 18:20

A gas station in Seoul. [YONHAP]

The Industry Ministry on Tuesday asked local oil refiners to avoid excessive price hikes amid heightened energy price volatility and escalating uncertainties in the Middle East.

The call came after Korea decided last week to extend the tax cut on fuel by two months with some adjustments, applying a 15 percent tax discount on gasoline and a 23 percent cut on diesel and liquefied petroleum gas.

Korea has been applying a 20 percent discount on gasoline and a 30 percent discount on diesel and liquefied petroleum gas, which were set to expire at the end of this month.

"To ensure that the tax cuts minimize the burden on the public, we ask oil refiners to refrain from implementing price increases beyond the discount," Yoon Chang-hyun, a senior ministry official, said during a meeting with local oil businesses.

Yoon added that while global oil prices have shown signs of stabilizing, geopolitical uncertainties in the Middle East continue to linger, noting that the government will continue to closely monitor related developments.

The country currently holds oil stockpiles sufficient for seven months, with no immediate supply disruptions detected, according to the ministry.

Korea depends on imports for most of its energy needs, and rising global oil prices have intensified inflationary pressures in the country.

Yonhap