South Korea freezes 10th fuel-price cap amid oil prices above $100

  • South Korea froze its 10th refinery supply-price cap at 1,784 won for gasoline, 1,773 won for diesel and 1,380 won for kerosene per liter.
  • The government allocated 4.2 trillion won this year and 1.4497 trillion won next year, bringing planned compensation to about 5.7 trillion won, or 5.65 trillion won for the first three quarters this year.
  • The National Assembly Legislative Research Service said the cap’s consumer-price effect remains difficult to verify, while compensation criteria and the first refiner settlement remain unresolved.

South Korea froze its 10th refinery supply-price cap at 1,784 won per liter for regular gasoline, 1,773 won for diesel and 1,380 won for kerosene for four weeks starting Saturday, as Middle East tensions kept WTI, Brent and Dubai crude above $100 a barrel. Fuel-tax reductions continue through Nov. 30. The government has allocated 4.2 trillion won this year and 1.4497 trillion won next year for refiner compensation, but most funds remain unexecuted because loss-calculation criteria are unresolved. The National Assembly Legislative Research Service said the cap’s effect on retail prices is difficult to verify because station inventories, procurement costs, distribution expenses and adjustment lags also affect prices.

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