The Ministry of Trade, Industry and Energy (Minister Kim Jung-kwan) announced that the 10th oil price ceiling, effective for four weeks starting at midnight on September 19, will be frozen at the same level as the preceding 9th ceiling. Although international oil prices have again surged to around 100 dollars per barrel, the government decided to hold domestic oil prices in place in consideration of the burden that rising prices place on ordinary citizens.
 [코리안투데이] 참고자료 10차 최고가격 동결 중동정세 불안으로 민생경제 보호 © 장형임 기자 |
The Ministry of Trade, Industry and Energy announced that the 10th oil price ceiling, which will apply for the next four weeks starting at midnight on Saturday, September 19, will be maintained at the same level as the 9th ceiling. Accordingly, the ceiling remains unchanged at 1,784 won per liter for gasoline, 1,773 won for diesel, and 1,380 won for kerosene.
Behind the freeze lies the renewed intensification of the situation in the Middle East. The war between the United States and Iran, which had shown a temporary lull in August, flared up again in September, and the situation in the Middle East worsened as Houthi rebels occupied cities near the Red Sea and other areas. As a result, international oil prices rose as of September 16 to 105.8 dollars per barrel for Brent crude, 128.0 dollars for Dubai crude, and 102.4 dollars for West Texas Intermediate (WTI). International petroleum product prices also jumped sharply the same day compared with the fourth week of August, with gasoline reaching 145 dollars per barrel and diesel 201 dollars.
 [코리안투데이] 참고자료 10차 최고가격 동결 중동정세 불안으로 민생경제 보호 © 장형임 기자 |
The government cited price and exchange-rate conditions as the reasons for not raising the ceiling despite the surge in international oil prices. The consumer price inflation rate, which had fallen from 3.2% in June to 2.8% in July, rose again to 3.1% in August, increasing the burden on the public. In contrast, the won-dollar exchange rate has fallen about 10%, from 1,505 won at the time of the 2nd designation (the fourth week of March), when the ceiling was raised by 210 won per liter, to 1,358 won recently (the third week of September). The exchange rate, together with international oil prices, is a factor that directly affects the cost of importing crude oil into the country. The government explained that it decided to freeze the ceiling with an emphasis on stabilizing people’s livelihoods, taking such factors into comprehensive consideration.
 [코리안투데이] 참고자료 10차 최고가격 동결 중동정세 불안으로 민생경제 보호 © 장형임 기자 |
The oil price ceiling system has been operated as a mechanism to protect the domestic household economy from high international oil price volatility since the outbreak of the war in the Middle East. Over the past six months, international oil prices have fluctuated widely between roughly 60 and 100 dollars per barrel and international product prices between roughly 90 and 180 dollars, yet domestic oil prices have remained stable. Looking at Dubai crude alone, the price fell from 169.8 dollars per barrel on March 23 to 62.3 dollars on July 2, then rose again to 128.0 dollars on September 16. The government stated that this system lowered the consumer price inflation rate by an average of 0.6 percentage points from March through August following the war in the Middle East.
Along with price stability, an effect of reduced consumption also emerged. From the second week of March, after the ceiling system took effect, through August, total retail sales volume at gas stations fell by 2.1% for gasoline and 8.4% for diesel compared with the same period a year earlier. By month, gasoline fell 2.2% and diesel 8.6% in July, and gasoline fell 1.2% and diesel 8.8% in August.
 [코리안투데이] 참고자료 10차 최고가격 동결 중동정세 불안으로 민생경제 보호 © 장형임 기자 |
This measure carries the significance of keeping the prices consumers experience at gas stations unchanged even during periods of surging oil prices, thereby easing the fuel-cost burden on households and self-employed business owners. The government stated that, as tensions in the Middle East persist, it will seek to stabilize people’s livelihoods through the oil price ceiling system while closely monitoring international oil price movements and domestic consumption trends, operating the system flexibly and prudently.
지역 홍보대사 신청 기자양성과정 신청 코리안투데이 지부장 신청 코리안투데이 인천강화코리안브랜드대상 신청 최고경영인대상 신청 소비자만족도대상 신청
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