Anna Jiwon Park has been covering the politics at The Korea Times since the summer of 2024, when she joined the press pool for the Office of the President in Korea. Prior to that, she spent about five years reporting extensively on financial markets, regulatory authorities and the financial industry. She joined The Korea Times in 2019 after spending eight years as a broadcast journalist at Arirang TV, Korea’s leading global broadcaster, covering politics, defense and culture.
Gov't considers gasoline price ceiling to curb sudden spike
President Lee Jae Myung speaks during a Cabinet meeting at Cheong Wa Dae in Seoul, Thursday. Yonhap
By Anna J. Park
Resource security alert issued for oil, gas
The government is planning to take strict action against gasoline price gouging, as domestic fuel prices have surged amid escalating tensions in the Middle East.
Speaking at a Cabinet meeting on Thursday, President Lee Jae Myung condemned the sharp rise in retail gasoline prices, warning that attempts to exploit a national crisis for profit will not be tolerated. In line with the president’s directive, the government is reviewing a price ceiling that would prevent gas stations from raising prices beyond a designated level.
“Objectively, there has not been a serious disruption to global oil supplies, yet prices suddenly skyrocketed,” Lee said. “I’ve heard that prices differ between morning, afternoon and evening, and that some gas stations have raised prices by nearly 200 won per liter ... It appears some are trying to profit from a national crisis with little regard for the hardships of others.”
He added that while it is understandable that concerns over potential disruptions to the global oil supply have pushed international crude prices higher, the sudden surge in retail fuel costs here appears excessive because these factors have not yet had a tangible impact on domestic supply conditions.
Typically, fluctuations in global oil prices are reflected in Korea’s retail fuel prices with a two- to three-week lag, but the current spike came almost immediately.
According to the Korea National Oil Corp.’s Opinet fuel price information system, the national average gasoline price stood at 1,807.1 won ($1.23) per liter as of 10 a.m. on Thursday, up 29.6 won from the previous day. In Seoul, the average gasoline price rose to 1,874.4 won per liter, a jump of 31.8 won in a day.
It marks the first time since August 2022 that the nationwide average price of gasoline has exceeded 1,800 won per liter.
Diesel prices have also risen sharply. The national average diesel price increased 56.5 won in a single day to 1,785.3 won per liter, while the Seoul average climbed 61.4 won to 1,865.4 won.
A driver refuels a vehicle at a gas station in Seoul, Thursday. Yonhap
Lee instructed officials to swiftly explore options for implementing price controls.
“If it is difficult to designate a single nationwide price ceiling, find practical alternatives such as applying limits depending on region or fuel type, and implement them quickly,” he said.
He also called for legal measures to address unfair price hikes.
“At the moment, it seems difficult to crack down and impose administrative penalties,” Lee said. “Please urgently review and establish the necessary systems to sanction this. This is not something we should leave unattended.”
In response, Deputy Prime Minister and Finance Minister Koo Yun-cheol said the government could consider invoking Article 23 of the Petroleum Business Act, which allows authorities to set an upper limit if fuel prices surge sharply.
“We will review fuel prices and if they remain high, we will consider designating a maximum price through an official notice,” Koo said.
The association representing Korea's gas stations said it agreed on the necessity to investigate unusually rapid price increases, but stressed that any policy response should also take into account the operating conditions of gas stations.
The Ministry of Trade, Industry and Resources also issued a security alert for oil and gas. It marks the first time in Korea that such a resource security alert has been issued for petroleum.
The resource security alert system consists of four levels — attention, caution, alert and severe — with the current measure representing the lowest level.
Under the alert, the ministry plans to secure additional crude oil supplies to prepare for potential shortages, make preparations to release government strategic petroleum reserves and strengthen monitoring and enforcement in the domestic petroleum distribution market.
President Lee Jae Myung speaks during a Cabinet meeting at Cheong Wa Dae in Seoul, Thursday. Joint Press Corps
Meanwhile, the president also called on the government to swiftly roll out a 100 trillion won ($68 billion) program to stabilize the country's financial markets, citing Middle East tensions as a threat to market confidence.
Lee warned that the worsening crisis in the Middle East is deteriorating the global economic and security environment. He noted that financial markets are facing growing uncertainties, emphasizing the need for swift and broad policy financing support for sectors expected to be directly affected by the crisis, particularly companies heavily dependent on Middle East exports and the shipping industry.
In addition, Lee instructed relevant ministries to identify Korean nationals currently in the region and prepare contingency evacuation plans to be used in case the situation worsens.
“While ensuring the safety of our citizens on the ground, make sure to have a rapid and secure evacuation plan ready in coordination with allied countries if needed,” Lee said, stressing the mobilization of all available resources, including military aircraft, chartered flights and overland routes.