South Korea is considering implementing a cap on oil prices for the first time in 30 years

BlockBeats News, March 8th, according to Yonhap News Agency, a source revealed on Sunday that the South Korean government is considering implementing an oil price ceiling for the first time in nearly 30 years due to concerns over rising energy prices amid the escalated Middle East conflict. Following the US airstrike on Iran and Iran's retaliatory actions, global oil prices surged. In the past, international oil price fluctuations would take about two weeks to transmit to the domestic market, but this time it almost immediately impacted domestic oil prices in South Korea, prompting officials to start considering the feasibility of introducing an oil price ceiling. The source stated that the government is carefully weighing this option as there may be side effects such as market distortions and financial burdens.

Prior to this, South Korean President Lee Jae-myung ordered that if it is difficult to implement a nationwide unified oil price ceiling, regional and fuel-specific price ceilings should be promptly established. The next day, Lee Jae-myung also warned oil refiners against colluding to raise gasoline prices. In accordance with the President's instructions, the government has set up an inter-agency inspection team to crack down on illegal oil distribution, hoarding, and unfair trading practices. However, despite these measures, gasoline prices at domestic gas stations in South Korea continue to rise.