South Korea will impose its first fuel price cap in almost 30 years as global jitters deepen over spiraling oil prices.
President Lee Jae Myung announced the cap on Monday, convening an emergency meeting in response to the ongoing Middle East conflict which he said poses a significant burden on South Korea’s energy-dependent economy.
The country’s industry ministry plans to implement the price cap this week, its presidential policy chief said.
It is a major step given South Korea’s status as a major world economy; a leading global exporter and a key member of the G20.
“For petroleum products that have been excessively increased recently, the maximum price system should be quickly introduced and boldly implemented,” Lee said.
Lee also advised his government to crack down on oil refinery companies and gas stations to prevent cornering the market while making efforts to secure supply ships that do not pass through the Strait of Hormuz.
Last week, the South Korean government announced that it will receive more than six million barrels of crude oil from the UAE.
The price of oil surged past $100 per barrel on Sunday, the first time it crossed that mark since Russia’s 2022 invasion of Ukraine. (CNN)