SEOUL: The industry ministry on Tuesday urged local oil refiners to avoid excessive price hikes amid heightened energy price volatility and escalating uncertainties in the Middle East. This appeal follows South Korea's decision to extend a tax cut on fuel by two months, applying a 15 percent tax discount on gasoline and a 23 percent cut on diesel and liquefied petroleum gas. According to Yonhap News Agency, South Korea has been implementing a 20 percent discount on gasoline and a 30 percent discount on diesel and liquefied petroleum gas, which were initially set to expire at the end of this month. The government's request aims to ensure that these tax cuts effectively ease the financial burden on the public. Yoon Chang-hyun, a senior official from the ministry, emphasized the importance of the tax cuts during a meeting with local oil businesses. He asked oil refiners to refrain from raising prices beyond the discounted rates, aiming to protect consumers from potential economic strain. Yoon also highlighted that although global oil prices have shown signs of stabilizing, ongoing geopolitical uncertainties in the Middle East persist. The government remains vigilant, closely monitoring these developments to anticipate any impact on the energy market. The ministry reassured the public that the country currently possesses oil stockpiles sufficient for seven months, with no immediate supply disruptions anticipated. However, South Korea's reliance on energy imports continues to pose challenges, as rising global oil prices contribute to inflationary pressures within the nation.
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