Seoul: The South Korean government on Friday decided to maintain its price ceilings for fuel products for the second consecutive period, citing ongoing high oil prices and continued tensions in West Asia. This decision was announced by the industry ministry, as reported by Yonhap News Agency.

According to Nam News Network, the maximum prices for regular petrol, diesel, and kerosene supplied by local refiners to petrol stations will remain steady at 1,784 won (US$1.30), 1,773 won, and 1,380 won per litre, respectively, for the next four weeks starting Saturday. This decision continues the price cap that has been in place for the past eight weeks since June 27, following a reduction to the current levels on June 26.

The backdrop to this decision includes a fluctuation in international oil prices, which fell to around US$70 per barrel in early August. However, Brent crude prices surged to US$90 on August 20 due to a prolonged stalemate in West Asia. This situation prompted the latest extension of the fuel price caps, as explained by a ministry official.

The South Korean government initially introduced these fuel price caps in mid-March with the aim of stabilizing domestic fuel prices amid supply chain disruptions caused by the conflict between the United States and Iran in West Asia. The ministry stated that it plans to adjust these emergency measures as necessary while keeping a close watch on developments in West Asia and their impact on the South Korean economy.