South Korea has announced a fuel price cap set to take effect at midnight in a bid to ease pressure on the nation’s energy supply amid escalating tensions in Iran.
The measure targets supply prices charged by refiners to distributors and gas stations, not the retail prices paid by consumers.
Heavily dependent on energy imports—including shipments through the Strait of Hormuz—Seoul is also exploring alternative supply routes to ensure stable crude deliveries. Officials said this is the first such intervention in South Korea, Asia’s fourth-largest economy, since 1997.
“The government has decided to introduce institutional measures aimed at curbing the recent surge in domestic oil prices triggered by the situation in the Middle East,” the Ministry of Energy said in a statement.
Under the new rules, maximum supply prices are set at 1,724 won (US$1.70) per litre for regular gasoline and 1,713 won per litre for automotive diesel, both below the average prices submitted by refiners earlier this week.
The price cap will remain in place for two weeks, after which it will be reviewed and adjusted based on domestic and global oil market conditions.
In a related move to strengthen energy security, South Korea last week secured a deal to import around four million barrels of crude oil from the United Arab Emirates. The country also maintains oil reserves equivalent to roughly seven months of consumption, providing a critical buffer against supply disruptions.
The unprecedented measure underscores Seoul’s proactive approach to stabilizing domestic fuel costs while safeguarding energy supply amid ongoing Middle East volatility.
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