Seoul:<Text>
Industry Minister Kim Jung-kwan on Friday urged oil refineries and gas stations to cooperate with the government's fuel price cap system introduced to ease cost burdens in the wake of the Middle East crisis. Kim made the call in a meeting with officials from South Korean oil refineries, gas stations, and the Korea National Oil Corp. held on the first day of the fuel price cap system implementation.
According to Yonhap News Agency, the Ministry of Trade, Industry and Resources reported that the temporary cap system took effect at midnight Thursday, setting maximum prices of products oil refineries supply to gas stations and distributors. The initial price ceiling was set at 1,724 won (US$1.16) per liter for regular gasoline, 1,713 won per liter for diesel, and 1,320 won per liter for lamp oil. The maximum price threshold will be readjusted every two weeks to reflect changes in international oil prices until the government decides to end the system when it determine s that domestic fuel prices have been stabilized.
In the meeting, industry representatives noted that while domestic oil prices have slightly decreased since Wednesday, the public's cost burden sentiment remains very high, agreeing that relevant authorities should work together to effectively implement the price cap system, according to the ministry. "As the price cap system stabilizes supply prices of refiners, I ask that gas stations also cooperate in maintaining stable retail prices so that the benefits of the system can be passed on to consumers," Kim said.
On Friday, Kim also convened an intergovernmental task force meeting on the inspection of unfair market practices involving fuel prices. "The fuel price cap system is a minimum safeguard to protect the national economy in a time of crisis, not a measure to control the market," Kim said during the meeting, vowing a stern response against actions attempting to take advantage of the situation, such as hoarding and price gouging. The task force has conducted more than 800 inspections on gas stations suspected of illegally distributing oil products and nabbed 20 cases of illicit activities, according to the ministry.
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