Seoul: South Korea will lower the cap on fuel prices to reflect the recent decline in global crude oil prices, the finance minister announced on Friday, while also freezing electricity and gas rates in the second half of the year. Finance Minister Koo Yun-cheol made these remarks during a meeting with economy-related ministers, emphasizing that the cap system will remain until consumer prices are fully stabilized.
According to Yonhap News Agency, details of the adjustments to the fuel price cap are expected to be announced later on Friday. The government initially introduced the fuel price caps in mid-March to stabilize domestic fuel prices amid supply chain disruptions caused by the conflict in the Middle East.
Minister Koo stated that the government will adjust these emergency measures in phases, closely monitoring developments in the Middle East and the South Korean economy. He noted that external uncertainties have gradually eased following a memorandum of understanding between Washington and Tehran. However, uncertainties still linger regarding follow-up negotiations, and burdens such as high consumer prices, a weak Korean won, high interest rates, and slowing employment persist.
In his remarks, Koo outlined the government's aim to keep inflation around 3 percent in the second half of the year. To support this objective, the government plans to freeze utility prices, including major services such as electricity and gas. He emphasized the government's proactive efforts to stabilize and improve people's livelihoods while working to normalize and advance the economy in the aftermath of the Middle Eastern conflict.
Additionally, the finance ministry announced plans to implement discount programs for agricultural and fishery products in July and August, along with measures to expand imports of fresh eggs and mackerel, as part of the broader strategy to alleviate economic pressures on the public.