The Republic of Korea has announced that it implemented a temporary fuel price cap system this week to help ease cost burdens amid supply concerns linked to the ongoing Middle East crisis, officials said.
According to Yonhap News Agency, the government announced the plan at a task force meeting of ministers responsible for managing market prices, as domestic fuel prices continue to fluctuate.
It marks the first time since 1997 that South Korea is enforcing the price ceiling system using a provision in the Petroleum Business Act that allows the industry minister to designate a maximum sales price when oil prices fluctuate sharply and threaten economic stability.
Under the price cap system, the government will set maximum prices for oil products South Korean oil refineries supply to gas stations and distributors, according to the Korean Ministry of Trade, Industry and Resources.