By Kim Hyun-cheol
Staff Reporter
The government announced the early implementation of energy saving measures, Sunday, which will compel civil servants to use their vehicles every other day from next week.
``Energy consumption is not dropping while global oil prices are still rising steeply. That's why we have decided to adopt these contingency measures earlier than planned,'' Prime Minister Han Seung-soo said after a meeting of economy related ministers. ``I expect the private sector to voluntarily join the energy-saving policies as well.''
The measures, formulated as a first-stage crisis management plan confirmed late last month, were originally to have been put into action if Dubai crude oil reached $150 per barrel. South Korea's benchmark oil traded at a record high $140.70 last week, more than double that of last year.
The even-odd system based on the last number of license plates will start July 15, while other actions including controlled use of air-conditioning in offices could be implemented sooner following a special instruction from the premier, the government said.
A committee will be formed to oversee the measures, as well as analyze domestic energy supply and demand, it added.
Some additional changes in the use of official vehicles will take place under the measures aimed at reducing the use of public officials' vehicles by 30 percent, and replacing about half of official vehicles with more energy-efficient compacts or hybrids by 2012, officials said.
The government also urged the private sector to participate, recommending citizens to voluntarily cut back on driving, and store owners to turn off neon advertising signs earlier than usual.
Analysts note that tightening belts in the public sector alone won't lead to substantial effects because this accounts for only 3.7 percent of all energy consumption.
``We are ready to implement obligatory measures for the private sector also. An alternate day system on vehicle use will be expanded to all vehicles and there will be some limitations on energy use if oil prices surpass $170,'' said Minister of Strategy and Finance Kang Man-soo.
Kang also hinted at more adjustments in economic forecasts depending upon oil prices.
``Economic figures and indices will be different from earlier predictions if oil breaches $150, so we are currently looking at them,'' he said. ``But I don't think it will be of any use to announce them prematurely.''
Last week, the ministry cut down this year's economic growth projection to 4.7 percent, 1.3 percentage points down from an earlier prediction, while raising the inflation outlook to 4.5 percent from the previous 3.3 percent.