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 simultaneously freezing electricity and gas rates for the second half of the year.
According to Yonhap News Agency, Finance Minister Koo Yun-cheol disclosed these plans during a meeting with economy-related ministers, emphasizing that the cap system will remain in effect until consumer prices are fully stabilized. This initiative follows the government's mid-March introduction of fuel price caps aimed at stabilizing domestic fuel prices amid disruptions caused by the conflict in the Middle East.
"We will freeze prices of major utilities, such as electricity and gas," Koo stated during the meeting. He further emphasized that the government is actively working to stabilize and enhance people's livelihoods while undertaking efforts to normalize and advance the economy in the aftermath of the Middle Eastern conflict.
Koo also mentioned that the government will progressively adjust the emergency measures currently in place, closely monitoring developments in both the Middle East and the South Korean economy. Additionally, the finance minister outlined the government's goal to maintain inflation at approximately 3 percent during the latter half of the year.