South Korea is preparing its first compensation settlement for oil refiners since introducing a fuel price cap on March 13. The settlement committee is expected to notify refiners as early as the 20th of each company’s compensation amount and calculation basis for the period through June 30. Refiners will have 30 days to file objections, after which the government plans to review claims, finalize payments and complete compensation before year-end. The main dispute is whether compensation should cover only crude procurement, production and sales costs plus a reasonable profit, or also earnings refiners say they lost because of domestic price controls and export restrictions. The industry estimates losses from March 13 through September at 1.8 trillion won ($1.2 billion) on a cost-based approach, while comparing the MOPS benchmark with the capped price produces an estimate of 5.71 trillion won ($3.9 billion). Both figures include losses outside the first settlement period, and the larger estimate exceeds the government’s 4.2 trillion won ($2.9 billion) contingency allocation. The cap, revised 11 times since March, currently limits gasoline and diesel prices to 1,784 won and 1,773 won per liter through the 13th. The government is also weighing when to end the system as oil prices ease, while considering Middle East conditions and tanker traffic. Experts recommend a phased relaxation with targeted support for vulnerable groups and affected industries.