Government Lowers Crude Oil Resource Security Alert to 'Caution'... Public Institutions Shift from Two-Day to Five-Day Vehicle Rotation

Full Lifting of LNG Crisis Alert
Supply Measures for Naphtha and Petrochemical Products to Remain in Place After July

As the Middle East war prolongs, the public institution vehicle operation system has been strengthened from the odd-even system to a '2-shift system'. On April 8, 2026, employees are informing drivers about the implementation of the 2-shift system in front of the Government Seoul Building in Jongno-gu, Seoul. Photo by Jinhyung Kang.

The government has decided to downgrade the crude oil resource security crisis alert by one level and fully lift the liquefied natural gas (LNG) crisis alert, reflecting the easing tensions in the Middle East and stabilization of energy supply and demand. Emergency measures, such as the public institution vehicle operation restriction system, will also be gradually normalized, with the system shifting from the two-day rotation to a five-day rotation.

Shin-hak Moon, Vice Minister of Trade, Industry and Energy, reported this energy supply and demand response plan at the Cabinet meeting on June 30.

The government will lower the current crude oil resource security crisis alert from "Alert (Level 3)" to "Caution (Level 2)," and will fully lift the LNG crisis alert, which had been at "Caution (Level 2)." This measure reflects the recent stabilization in crude oil and LNG supply and the easing of tensions in the Middle East.

As supply and demand conditions improve, expanded support for diversified crude oil shipping cost differentials, reserve oil swaps, and support for naphtha alternative import cost differentials will continue only until today and then end. However, considering the possibility of intermittent supply chain bottlenecks in certain items, the government will maintain supply and demand measures for naphtha and petrochemical products even after July.

Some emergency demand management measures will also be eased. The government will shift the public institution vehicle operation restriction from the two-day rotation to the five-day rotation, and will lift the five-day rotation restriction for public parking lots.

The government will also strengthen market monitoring to ensure that the effects of the oil price cap are quickly reflected in the market. In addition, preparations to establish a notification system for refinery loss compensation and to launch a settlement committee will continue.

Furthermore, to strengthen industrial and resource security, the public and private sectors will jointly pursue mid- to long-term initiatives such as diversifying energy import sources, expanding reserve capacity, and enhancing global resource cooperation.

This content was produced with the assistance of AI translation services.