Despite Rising International Oil Prices, Oil Price Ceilings Frozen: "Considering Inflation and Cost-of-Living Burden"

Ministry Announces Ninth Oil Price Ceiling

Gasoline: 1,784 won; Diesel: 1,773 won

Effective for Four Weeks Starting Midnight on August 22

The ninth round of oil price ceilings, effective from midnight on August 22, has been frozen. Although international oil prices are rising again due to heightened uncertainty in the Middle East—driven by ongoing tensions between the United States and Iran—the government has decided to maintain the ceiling at the eighth-round level in order to reduce pressure on the cost of living and alleviate the burden on citizens.

The Ministry of Trade, Industry and Energy announced that, starting from midnight on August 22, the ninth round of oil price ceilings—which will be in effect for the next four weeks—will be frozen at the previous, eighth-round level. Accordingly, the ninth ceiling price remains the same as the eighth: gasoline at 1,784 won per liter, diesel at 1,773 won, and kerosene at 1,380 won.

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A Ministry official said, "Even after the expiration of the 60-day U.S.-Iran armistice memorandum of understanding (MOU) signed in June, tensions have continued between the two countries, further increasing uncertainty in the Middle East." The official explained, "In early August, international oil prices fell as low as the $70 per barrel range on hopes of a ceasefire, but as the Middle Eastern conflict remains deadlocked, as of August 20 Brent crude rose to over $90 per barrel. As a result, international oil product prices also climbed again."

According to the Ministry, Brent crude oil was at $81.7 per barrel in the first week of August but rose to $93.8 as of August 20. In the same period, Dubai crude increased from $79.8 to $95.6, and West Texas Intermediate (WTI) went up from $77.4 to $87.8. Consequently, international gasoline prices also increased from $105 to $114, and diesel from $148 to $164. However, domestic prices have continued to decline since the rollout of the seventh ceiling price (June 27), and as of August 20, gasoline is at 1,862 won per liter and diesel at 1,845 won per liter.

The government has decided to freeze the ceiling price, taking into account not only the current state of international oil prices but also recent inflationary pressures on average citizens. The Ministry explained that, while there is a possibility of further increases in international oil prices due to ongoing deadlock in Middle East negotiations, the decision also considered (1) that current international oil and product prices are similar to those at the time of the eighth ceiling; (2) the extreme heatwave; and (3) the heightened burden on citizens caused by abnormal weather conditions such as heavy rainfall.

A Ministry official stated, "Since the situation in the Middle East is constantly evolving, the government will continue to monitor both domestic and international developments in real time," adding, "We will operate the price ceiling system in a flexible and agile manner, taking into comprehensive consideration the Middle East situation, oil supply and demand, inflation and cost-of-living pressures, and the need for demand management."

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