South Korea's Industry Ministry on Friday imposed temporary maximum supply prices on gasoline, diesel and kerosene, marking what authorities called the most forceful energy market intervention the country has enacted in almost three decades.
The emergency measure establishes a cap on regular gasoline at 1,724 won per liter at the wholesale level. Officials limited the controls to refiners' supply prices rather than extending them to retail consumer prices. By restricting the measure to the wholesale side, the government aims to address volatility among suppliers while avoiding direct compression of margins at retail service stations.
The initial price cap is scheduled to remain in effect for two weeks, through March 26, at which point the government will revisit and adjust the limits as necessary.
Separately, the Finance Ministry issued a directive for oil refiners to deliver at least 90% of their March-April volume from last year. The ministry framed this requirement as a step to avert artificially induced shortages in the market. Under the new rules, the government has expressly prohibited hoarding, withholding of supply and favoritism in distribution.
Taken together, the measures focus on curbing wholesale price swings and securing supply continuity without imposing direct retail price controls. The intervention mirrors a level of government involvement not seen since the last time similar tools were used - during the Asian Financial Crisis - underscoring the authorities' intent to stabilise the market in the near term.
Key elements of the policy package include the wholesale cap for regular gasoline, the supply-volume floor applied to refiners for the March-April period, and explicit bans on manipulative distribution behaviours. The government has presented the package as time-limited and subject to adjustment after the initial two-week period.
The announcement concentrates enforcement and oversight on refiners and distribution channels rather than on retail fuel outlets, reflecting a deliberate split between wholesale and consumer-facing pricing. How the measures play out beyond the initial two-week window will depend on the adjustments the government makes following its review at the end of the period.