Seoul: Budget Minister nominee Park Hong-keun said Monday a proposed supplementary budget bill should include measures to stabilize energy supplies, including oil reserves, amid the ongoing crisis in the Middle East.
According to Yonhap News Agency, Park emphasized the necessity of a supplementary budget during a parliamentary confirmation hearing, noting that while a fuel price cap is currently in place, the uncertainties of the Middle East situation render such a budget inevitable. He cited the difficulty in predicting the duration of the crisis as a key factor driving the need for additional measures.
Amid rising global oil prices, the government has implemented a price cap system on products supplied by oil refineries to gas stations. This measure aims to alleviate the cost burdens associated with soaring fuel prices, which have been exacerbated by supply concerns stemming from the conflict.
Park outlined that the extra budget should focus on securing essential items for future supply chain stability and diversifying supply routes, which includes the stockpiling of oil. He also addressed the need for support for companies affected by trade disruptions with the Middle East, indicating that the finance ministry is currently assessing demand and that support measures for impacted industries will be incorporated.
The ruling Democratic Party is set to pass the supplementary budget bill in a parliamentary plenary session next month. This follows President Lee Jae Myung's directive to swiftly prepare measures to address the economic repercussions of the ongoing crisis.