Seoul:<Text>

The government announced Thursday that it will maintain existing price caps on fuel products for an additional two weeks, taking into account international oil prices and demand-side controls. The Ministry of Trade, Industry, and Resources confirmed that maximum prices for regular gasoline, diesel, and kerosene supplied to gas stations by local oil refineries will remain at 1,934 won (US$1.3), 1,923 won, and 1,530 won per liter, respectively, for the upcoming fortnight.

According to Yonhap News Agency, this decision marks the second consecutive extension of the current price ceilings. The government sets these maximum prices under a price cap system introduced in mid-March, aiming to stabilize domestic fuel prices amid ongoing global energy market volatility. This instability is partly attributed to the fragile ceasefire between the United States and Iran, coupled with the necessity to manage domestic fuel demand despite recent declines in international fuel price s.

Over the last two weeks, global prices for gasoline, diesel, and kerosene have decreased by approximately 8 percent, 14 percent, and 2 percent, respectively, as reported by the ministry. Despite these price drops, the government remains cautious, with Nam Kyung-mo, policy advisor to the industry minister, indicating that terminating the price cap system is not currently under consideration. The uncertainties in the Middle East and elevated fuel prices compared to pre-war levels contribute to this decision.

Nam also highlighted the government's commitment to providing fiscal compensation to oil refineries impacted by the price ceiling system. Without this system, prices for gasoline, diesel, and kerosene sold by refineries to stations would have been significantly higher, estimated at around 2,200 won, 2,800 won, and 2,500 won, respectively. Additionally, the ministry emphasized its ongoing efforts to secure the supply of essential industrial materials, particularly for t he medical sector, ensuring adequate stocks of IV solution packaging materials, syringes, and medical gloves.

The ministry further assured that there are no current disruptions in the supplies of key industrial materials crucial for the semiconductor, automobile, shipbuilding, and other advanced industries. South Korea continues to import alternative materials, such as helium and hydrogen bromide, to mitigate any potential supply challenges.