Global Oil Prices Surpass $100... Maximum Price Cap and Fuel Tax Cuts Kept in Place

[Anchor]

As tensions in the Middle East escalate once again, international oil prices have surpassed 100 dollars per barrel. The government has decided to maintain the petroleum maximum price system for the time being, which it had even considered terminating.

Reporter Choi Seung-hun has the story.

[Reporter]

Cars drive continuously into a gas station in Seoul.

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

[Kwak Gyeong-rim / Gangseo-gu, Seoul: It seems so difficult for people like us who only look around for cheap places. I really hope the war ends quickly, but since it's starting all over again...]

[Lee Nam-jae / Gangseo-gu, Seoul: There is not much we can do at our age, but if fuel prices keep going up, isn't it difficult to even drive a car?]

As of 7:00 PM yesterday, the national average retail prices at gas stations stood at 1,870 won for gasoline and 1,855 won for diesel.

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

As oil prices showed instability once again, the government decided to freeze the 8th maximum petroleum prices, which will be applied for four weeks starting today, at the existing level.

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

When the government lowered the 7th maximum prices by 150 won per liter on June 27, it even considered terminating the maximum price system depending on international oil price conditions, but that has become difficult for the time being.

[Yang Gi-wuk / Head of the Industrial Supply Chain Policy Office at the 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 we need to adjust it (even within the four-week period).]

In addition, the fuel tax cut scheduled to end at the end of this month will be extended by two months until the end of September, and the prohibition on hoarding urea and diesel exhaust fluid will be maintained for another month.

The government explained that the fiscal burden from operating the maximum price system is still at a manageable level, but if the operation period exceeds six months, it will have to consider other measures.

(Photo: Yonhap News)
(Video reporting: Park Hyun-chul, Video editing: Ahn Yeo-jin, Design: Lee Ga-jin)
※ Please note: This article was translated by AI and may contain errors.