President Lee Jae-myung mentioned that the oil price ceiling system may need to be further strengthened as the situation in the Middle East deteriorates once again.
During a cabinet meeting presided over at the Blue House today (July 21), President Lee stated, "The situation in the Middle East is worsening again, and there is no clear sign of an early end to the conflict or a ceasefire, so we need to carefully monitor the impact on domestic prices."
He added, "According to the original plan, we should have lowered or abolished the price ceiling by now, but it seems we may need to strengthen it instead."
This is interpreted as a move to address the rebound in international oil prices caused by the heightened crisis in the Strait of Hormuz, amid intensifying armed conflict between the United States and Iran.
In response, Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol replied, "We will make a decision by taking the oil price situation into account," and added, "We will monitor the situation."
The oil price ceiling system was introduced on March 13 to curb the surge in domestic oil prices caused by the Middle East war and has been in effect for over four months.
The government lowered the 7th oil price ceiling by 150 won per liter on June 27.
Furthermore, President Lee urged, "Managing prices is not an easy task, so please do your best to ensure that no elements of corruption intervene in the process, whether through tariff quotas or low-cost imports."
He also ordered, "If the situation worsens, such as through rising oil prices, there is a possibility that hoarding and cornering will become rampant again," adding, "We should maintain vigilance, strengthen crackdowns, and consider stricter confiscation and forfeiture of goods subject to hoarding and cornering at an early stage."
He continued, "Since the impact of hoarding and cornering on the domestic economy is so significant, we must respond sternly," and instructed officials to review amendments to relevant laws if necessary.
(Photo: Yonhap News)