South Korea imposes government-set cap on gasoline, diesel and kerosene prices
South Korea began enforcing a government-set ceiling on wholesale and retail fuel prices at 0:00 on the 13th, with President Lee Jae-myung announcing the measure at a Blue House briefing on the 12th and urging the public to report any gas stations that violate the cap via his X account (formerly Twitter).
The government designated maximum prices per liter for three main fuels: ordinary gasoline at 1,724 won, diesel for vehicles at 1,713 won, and indoor heating kerosene at 1,320 won. The Ministry of Trade, Industry and Energy and the Ministry of Economy and Finance said the caps apply to supply prices charged by refiners.
Officials said the price cap was adopted because domestic fuel markets had shown steep price increases even though import costs had not risen sharply. Gasoline prices rose from about 1,693 won per liter on February 27 to 1,903 won as of the 12th, a roughly 12.4% increase; diesel climbed from 1,592 won to 1,924 won per liter, about a 20.9% gain.
Industry groups welcomed the move. The Korea Petroleum Association said it would actively cooperate with the government's plan, with major refiners SK Energy, GS Caltex, S-Oil, and HD Hyundai Oilbank pledging to comply with the announced caps and to ensure steady supply from the 0:00 start on the 13th.
Representatives of the refiners stressed cooperation with the policy. An SK Energy official said the company would work closely with the government to stabilize petroleum product prices and ensure stable supply. An S-Oil spokesperson explained that the two-week price-revision cycle is intended to dampen rapid price swings and that the company will follow government guidance.
For U.S. readers, the policy matters because South Korea is a major oil importer and a key U.S. ally in Asia. Market stability in Korea can influence regional energy prices, inflation, and supply chains that involve American manufacturers, suppliers, and consumers. The price cap also signals how Seoul intends to manage energy affordability and market volatility amid ongoing global energy-market uncertainties.
The measures were implemented by the government with involvement from the relevant ministries, and authorities encouraged monitoring for price abuses. The policy aims to curb speculative pricing and protect consumers while maintaining a predictable supply of essential fuels.