10th Maximum Petroleum Price Frozen for "Cost of Living Stability"

1,784 Won per Liter for Gasoline, 1,773 Won for Diesel, 1,380 Won for Kerosene
Effective for Four Weeks Starting Midnight on the 19th
"Adjustments Possible Depending on Middle East Situation"
Ministry of Industry: "Diesel Consumption Down 8.4% Since Maximum Price System Enacted"

The 10th maximum petroleum price, set to take effect at midnight on September 19, has been frozen. Although international oil prices are rising again due to increased Middle East tensions and inventory accumulation, the government has decided to freeze the maximum price in order to stabilize the cost of living for citizens.

The Ministry of Trade, Industry and Energy announced on September 18 that it would freeze the 10th round of maximum petroleum prices—applicable for the next four weeks starting midnight on September 19—at the same level as the ninth round. The 10th maximum price remains at 1,784 won per liter for gasoline, 1,773 won for diesel, and 1,380 won for kerosene. The maximum petroleum price system sets an upper limit on petroleum product prices supplied by refiners, with the government compensating refiners for losses incurred by exceeding this ceiling.

A citizen is refueling a vehicle at the Mannam Square Discount Gas Station in Seocho-gu, Seoul. Photo by Jo Yong-Jun

According to the Ministry, after a temporary lull in August, war between the United States and Iran escalated again in September, and the situation in the Middle East has deteriorated further as Houthi rebels have occupied cities near the Red Sea. Due to heightened tensions in the Middle East, the international price of Brent crude oil reached 105.8 dollars per barrel, Dubai crude stood at 128 dollars, and West Texas Intermediate (WTI) at 102.4 dollars as of September 16. As a result, international gasoline prices rose to 145 dollars per barrel and diesel to 201 dollars per barrel, pushing petroleum product prices up again.

A Ministry official stated, "The government has closely monitored the international oil price environment. Taking into account the recent burden of living costs on ordinary citizens, the trend in previous maximum price designations, and the recent decline in the exchange rate, the government has decided to prioritize the stability of people's livelihoods and freeze the maximum price." The official added, "Although the consumer price inflation rate fell from 3.2% in June to 2.8% in July, it rose again to 3.1% in August, increasing the financial burden on citizens."

The Ministry believes that the maximum petroleum price system has played a key role in protecting the domestic economy from high international oil price volatility since the outbreak of the Middle East war. While international oil prices have seen significant fluctuations—ranging from approximately 60 to 100 dollars per barrel over the past six months, and international product prices ranging from about 90 to 180 dollars per barrel—domestic petroleum prices have remained stable due to the maximum pricing system. The Ministry official explained, "The maximum petroleum price system has helped reduce the consumer price inflation rate by an average of 0.6 percentage points between March and August following the Middle East conflict." He continued, "Since the implementation of the maximum price system—from the second week of March to August—domestic petroleum consumption (total retail sales at gas stations) decreased by 2.1% for gasoline and 8.4% for diesel compared to the same period last year."

The Ministry has also left open the possibility of adjusting the maximum petroleum price system, taking into consideration the sustained tensions in the Middle East. The government will continue to operate the system with flexibility and prudence, closely monitoring trends in international oil prices and domestic petroleum consumption.

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