Fuel consumption down after price cap system: official

Buses are stationed at a parking lot of Sejong City Transport Corp., March 26, following an increase in diesel fuel prices. Yonhap

Korea's fuel consumption has decreased since the country implemented a price cap system, an industry ministry official said Thursday, dispelling concerns that the system may push up crude consumption amid supply disruptions caused by the Middle Eastern crisis.

Gasoline sales between the fourth week of February and the second week of April went down 11 percent from the corresponding tally for the same period last year, Yang Ghi-wuk, deputy minister for trade, industry and resource security, said in a regular press briefing on the energy supply.

Diesel sales decreased 7.1 percent year-on-year over the cited period.

The Seoul government introduced the fuel price cap system on March 13, about two weeks after the United States and Israel launched airstrikes against Iran, in a bid to rein in surging fuel prices.

Yang's comments came in response to concerns the price ceiling system may lead to an increase in fuel consumption amid crude supply disruptions.

Regarding Wednesday's announcement that Korea has secured 273 million barrels of crude oil for use this year from four nations in the Middle East, Yang said the government has received confirmation from Saudi Arabia's national oil company, Saudi Aramco, that it will ship 50 million barrels to Korea by June.

Seoul had imported around 80 million barrels of oil on a monthly average before the Iran war broke out.