[Anchor]

Global oil prices have once again surpassed 100 dollars a barrel. Brent crude, which dropped to the low 70s earlier this month, has surged more than 30 percent in three weeks. As Yemen's Iran-backed Houthi rebels attacked two Saudi oil tankers in the Red Sea, concerns are growing that not only the Strait of Hormuz but also the Red Sea could be blocked. Amid worries that instability in international oil prices will spread to domestic fuel costs, the government has frozen the 8th petroleum maximum price cap and extended the fuel tax cut, which was scheduled to end later 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.

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

[Kwak Kyung-lim / Gangseo-gu, Seoul: It is so tough for people like us who have to hunt around just for cheap places. I really wish the war would end quickly, but it is starting all over again...]

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

As of 7:00 PM today (July 24), the national average retail price at gas stations is 1,870 won per liter for gasoline and 1,855 won for diesel.

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

As oil prices show signs of instability once again, the government has decided to freeze the 8th maximum petroleum price cap, which will apply for four weeks starting tomorrow, at its 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.

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

[Yang Gi-wuk / Head of the Industrial Supply Chain Security Office at the Ministry of Trade, Industry and Energy: We expect it to be maintained at the current level for the time being, and if there are sudden changes in the situation, we may reach a point 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 ban on hoarding urea and urea solution 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, other measures will need to be considered.

(Video reporting: Park Hyun-chul | Video editing: Cho Mu-hwan | Design: Lee Ga-jin)