Global Oil Prices Surge Again... Oil Price Ceilings and Fuel Tax Cuts Maintained

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Global crude oil prices have surpassed 100 dollars per barrel once again. Brent crude, which had fallen to the low 70-dollar range earlier this month, has surged by more than 30 percent in just three weeks. Concerns are mounting that not only the Strait of Hormuz but also the Red Sea could be blocked after Yemen's Iran-backed Houthi rebels attacked two Saudi oil tankers off the coast of the Red Sea. Amid worries that the instability in international oil prices could spread to domestic fuel costs, the government has frozen the 8th petroleum price ceiling and extended the fuel tax cut, which was set to expire at the end of this month, by two months.

Reporter Choi Seung-hun has the story.

[Reporter]

Cars pull in one after another at a gas station in Seoul.

Since the Middle East war, hunting for cheap gas stations has become a daily routine.

[Kwak Kyung-rim / Gangseo-gu, Seoul: It seems so difficult for people like us who have to hunt around just for cheap places. I really hope the war ends quickly, but now it is starting all over again...]

[Lee Nam-jae / Gangseo-gu, Seoul: I am elderly and not doing much, but when fuel prices go up, isn't it hard to even drive a car?]

As of 7:00 PM today (the 24th), the average retail price at gas stations nationwide stands at 1,870 won for gasoline and 1,855 won for diesel.

The downward trend slowed starting in mid-July, when tensions in the Middle East began to rise, and prices even ticked up slightly in Seoul.

As oil prices showed signs of instability once again, the government decided to freeze the 8th petroleum price ceiling, which will apply for four weeks starting tomorrow, at the existing level.

The upper limits on refinery supply prices are set at 1,784 won per liter for gasoline, 1,773 won for diesel, and 1,380 won for kerosene.

When the government lowered the 7th price ceiling by 150 won per liter on June 27th, it even considered ending the price ceiling system depending on international oil price trends, but doing so has become difficult for the time being.

[Yang Gi-wook / Head of the Industrial Supply Chain Policy Office, Ministry of Trade, Industry and Energy: We expect it to be maintained at the current level for the time being. If there are sudden changes in the situation, circumstances may arise where adjustments are necessary (even within the four-week period).] (Note: Title translated based on official ministry role structure)

In addition, the fuel tax cut slated to end at the end of this month will be extended by two months until the end of September, and the ban on hoarding urea and urea solution will be maintained for another month.

The government explained that while the fiscal burden from operating the price ceiling system is still at a manageable level, other measures will need to be considered if the operation period exceeds six months.

(Video reporting: Park Hyun-chul, Video editing: Cho Mu-hwan, Design: Lee Ga-jin)
※ Please note: This article was translated by AI and may contain errors.