South Korea introduces first fuel price cap in 30 years as oil soars past $100

South Korea is set to introduce its first fuel price cap in nearly 30 years due to rising oil prices. President Lee Jae Myung made the announcement on Monday after holding an emergency meeting. He expressed concerns about the ongoing conflict in the Middle East, which he believes is putting a significant strain on South Korea’s energy-dependent economy. The country’s industry ministry plans to start the price cap this week, according to the presidential policy chief. This move is significant, as South Korea is a major global economy, a top exporter, and an important member of the G20. “For petroleum products that have risen excessively, we need to quickly implement a maximum price system,” Lee stated. He also urged his government to regulate oil refinery companies and gas stations to avoid market manipulation and to secure supply ships that do not navigate through the Strait of Hormuz. Last week, the South Korean government revealed plans to receive over six million barrels of crude oil from the UAE. Oil prices soared past $100 per barrel on Sunday, marking the first time they reached that level since Russia invaded Ukraine in 2022.