South Korea Urges Oil Refiners to Avoid Excessive Fuel Price Hikes Amid Middle East Tensions

Government Calls for Transparent Petroleum Pricing​

Seoul, March 9: South Korea’s Industry Minister Kim Jung-kwan on Monday urged major oil refiners to avoid excessive fuel price increases as international crude oil prices surge due to the ongoing tensions in the Middle East.

During a meeting in Seoul with representatives from leading oil refining companies and government authorities, Kim emphasized the need for transparent and fair petroleum pricing so that consumers are not unfairly burdened by global price fluctuations.

“We request that transparent and fair petroleum pricing be implemented to ensure that the burden of rising international oil prices due to the recent situation in the Middle East is not unilaterally or excessively passed on to consumers,” Kim said during the meeting, according to the Ministry of Trade, Industry and Resources.

Major Refiners Attend Government Meeting​

Officials from key refining companies including SK Energy, GS Caltex, S-Oil, and HD Hyundai Oil Bank participated in the discussions with the government.

Kim pointed out that domestic fuel prices in South Korea usually reflect global crude oil price movements with a lag of about two weeks. However, prices in the country have risen sharply after the United States and Israel launched airstrikes against Iran last week.

The minister warned that any attempt to exploit rising global oil prices in a way that harms consumer stability would face serious consequences.

Seoul Gasoline Prices Cross Four-Year High​

Fuel prices in the capital have climbed significantly in recent days. Data from the Korea National Oil Corp showed that the average gasoline price in Seoul crossed 1,900 won per litre for the first time in nearly four years on Friday.

The average price continued to rise, reaching 1,945 won per litre as of Sunday.

Amid mounting criticism from the public, the Korea Oil Station Association stated earlier that the recent spike in domestic fuel prices is largely linked to higher supply prices set by oil refiners.

Government Prepares Measures to Stabilize Energy Market​

The South Korean government has already issued a precautionary alert over a potential resources crisis as instability in the Middle East continues to affect global energy markets.

Authorities are working to secure additional crude oil supplies from regions outside the Middle East while also preparing contingency plans that may include releasing oil from national reserves if necessary.

At the same time, regulators have launched an intensified crackdown on unfair practices in the energy supply chain. Officials are also reviewing the possibility of introducing a price cap system for oil, which would be the first such measure in nearly 30 years.