The Korea Times
The government’s decision to keep the third-round oil price cap unchanged from the previous level is raising concerns over potential market distortions and mounting fiscal strain amid ongoing volatility in global oil prices linked to the Middle East crisis, analysts said Sunday. By capping prices, the policy weakens the link between domestic fuel prices and global benchmarks, adding pressure on refiners’ margins, they warned. The government introduced the fuel price cap system on March 13 to curb a surge in domestic oil prices. It adjusts ceilings on fuel prices supplied by refiners to gas stations and distributors biweekly, based on movements in global oil prices. The Ministry of Trade, Industry and Resources maintained the third round of price ceilings on gasoline, diesel and kerosene, leaving them unchanged levels for the next two weeks, effective from Friday, aiming to ease the burden of price volatility for consumers. Under the measure, the maximum prices were kept at 1,934 won ($1.30) per liter for gasoline, 1,923 won for diesel and 1,530 won for kerosene. The latest decision ra
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