Korea to conditionally ease diesel export restrictions amid stable crude supplies
Oil prices can be seen at a gas station in Seoul, Sunday. Yonhap
Korea will ease export restrictions currently imposed on diesel starting in November on condition that domestic supply remains stable, the industry ministry said Thursday.
The Ministry of Trade, Industry and Resources said the government will allow diesel exports of up to 110 percent of the volume recorded in the same month a year earlier, up from the current cap of 100 percent.
The higher cap will apply only when oil refiners fulfill their domestic supply obligations and maintain adequate inventories, the ministry added.
Korea adopted export restrictions on fuel products when it implemented the oil price cap system in March to maintain stable domestic supply. Local oil refiners have recently called for such restrictions to be eased.
The industry ministry said crude supplies remain stable, citing crude import volumes for October and November equivalent to at least 100 percent of last year's monthly average.
"With tensions in the Middle East lingering, the government will closely monitor the supply of petroleum products and immediately reinstate the previous cap should further supply concerns arise," a ministry official said.