South Korea introduces fuel price caps amid market volatility

On Monday, South Korean President Lee Jae-myung announced the implementation of a fuel price cap system for the first time in nearly 30 years. This decision follows a spike in global crude oil prices, which exceeded 100 dollars per barrel for the first time since the 2022 Russian invasion of Ukraine, driven by escalating conflicts in the Middle East. The South Korean government intends to apply this price limit as early as this week, with adjustments potentially occurring every two weeks. President Lee emphasized that the move is essential for an economy heavily dependent on energy imports and global trade. Additionally, the administration will increase inspections of refineries and fuel stations to prevent market manipulation. South Korea plans to diversify its energy sources, seeking supply routes that bypass the Strait of Hormuz. The government also confirmed it will receive over six million barrels of crude oil from the United Arab Emirates. Officials stated that the nation currently holds oil reserves sufficient for 208 days of consumption.