Cars line up at a gas station in Seoul, South Korea, 09 March 2026, as oil prices surge due to the intensifying conflict in the Middle East, with the benchmark West Texas Intermediate crude oil futures contract surpassing 100 USD per barrel in New York, the highest level since June 2022. Photo by YONHAP / EPA
March 10 (Asia Today) — South Korea plans to introduce a temporary price cap on petroleum products this week and is considering additional fuel tax cuts as global oil prices surge following tensions in the Middle East, officials said Monday.
The Ministry of Economy and Finance said the government reported its response plan during a Cabinet meeting, outlining measures including strengthened interagency emergency coordination and 24-hour monitoring of energy markets.
Officials said the price cap aims to limit the recent surge in domestic fuel prices and prevent further economic strain on small businesses, freight operators and farmers.
International oil prices have risen sharply amid concerns that Iran could disrupt shipping through the Strait of Hormuz, a key global energy route.
As of Sunday evening, Brent crude traded at about $102.9 per barrel while West Texas Intermediate crude reached about $102, government officials said.
Domestic gasoline prices have also climbed. The average retail price reached about 1,904 won ($1.46) per liter Sunday evening despite no immediate disruption in fuel imports.
Officials warned that higher oil prices could drive a broader increase in costs for logistics, delivery services and agricultural production.
In response, the government said it will implement a maximum price system for petroleum products this week while reviewing further reductions in fuel taxes and possible direct support for fuel consumers.
Authorities will also strengthen joint inspections targeting fuel hoarding, price collusion, illegal distribution and refusal to sell petroleum products.
The government plans to increase imports of oil products from sources outside the Middle East and expand alternative power generation, including nuclear and renewable energy, to stabilize supply.
Financial market monitoring will also be tightened as volatility rises in stock and bond markets.
Officials said authorities will step up surveillance of market manipulation and accelerate reforms aimed at strengthening the capital market. The government also plans to activate a “100 trillion won plus alpha” market stabilization program – equivalent to roughly $77 billion – to respond to rising government bond yields.
The ministry said additional contingency measures could be introduced if the Middle East conflict continues.
“We are preparing comprehensive support measures to stabilize the economy and people’s livelihoods while considering even worst-case scenarios,” a ministry official said.
— Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260310010002908