Government urges local oil companies to control pricing

The government has appealed to the local oil industry to refrain from raising oil prices, even as it continued to do so following the extension of the oil tax reduction period. This move underscores the government's concerns that the upward trend in oil prices could contribute to an inflationary impact, which has remained subdued for some time.

On Friday, the Ministry of Trade, Industry, and Energy disclosed the convening of an oil market monitoring session, which brought together stakeholders such as the four leading commercial oil refiners (SK Energy, GS Caltex, S-Oil, and Hyundai Oil Bank), the Korea Petroleum Association, the Korea Oil Association, and the Korea Oil Station Association. The Ministry's Director-General of the Bureau of Resources Industry Policy urged participants during the session to collaborate in achieving stability in local oil prices and alleviating the public's burden, given the government's extension of temporary oil tax reduction. He emphasized that any price increases should not surpass international oil price increments and additionally requested that affordable gas stations take the lead in stabilizing oil prices. The government plans to monitor oil market prices until they become stable persistently.

Originally, the government had intended to conclude its oil tax reduction measure by the end of August. Nonetheless, in response to inflationary pressures stemming from volatile global oil prices, it opted to prolong the measure until October 2023. Presently, gasoline taxes have been reduced by 25%, while taxes for diesel, LPG, and butane gas have undergone a reduction of 37%.


1am@donga.com