Government's 5th Fuel Price Cap to Remain Unchanged From 4th

Why It Matters

Keeping wholesale fuel caps steady helps curb retail price inflation, protecting household budgets and essential transport sectors amid volatile global oil markets.

Key Takeaways

• Government freezes fifth fuel price cap at previous levels.
• Wholesale caps: 1,934 W gasoline, 1,923 W diesel, 1,531 W kerosene.
• Pump prices remain high, averaging 20‑25 W per liter for gasoline.
• Inflation hit 2.6% in April, petroleum up 21.9% YoY.
• Cornering and hoarding ban extended through July to protect consumers.

Summary

South Korea’s government announced that the fifth round of wholesale fuel price caps will remain unchanged from the previous round, taking effect for two weeks starting midnight Friday. The caps lock gasoline at 1,934 won per liter, diesel at 1,923 won, and kerosene at 1,531 won, aiming to shield consumers from rising wholesale costs.

Despite the freeze, pump prices stay elevated, with the national average gasoline price hovering around 20‑25 won per liter and diesel near 26 won. Consumer price inflation rose to 2.6% in April, the highest in 21 months, driven largely by a 21.9% year‑on‑year surge in petroleum prices. International oil markets remain volatile, with crude hovering around $100 a barrel amid ongoing Middle East tensions.

The Ministry of Trade, Industry and Resources emphasized that the cap freeze prioritises household livelihoods and protects fuel‑dependent workers such as truck drivers and farmers. To ensure the wholesale controls translate to retail prices and curb market abuse, the government also extended its ban on cornering and hoarding petroleum products through July.

The policy underscores the delicate balance Korean authorities must strike between curbing inflation and managing fiscal exposure. By holding wholesale caps steady, the government hopes to prevent further retail price spikes, but sustained high oil prices could pressure the cap’s effectiveness and strain public finances.

Original Description

석유 최고가격제 5차 시작… 4차 가격으로 유지

Korea is freezing its petroleum price caps at current levels as retail fuel costs at the pump continue to climb, adding pressure to household finances.

This comes as the government says the price cap which was enacted a couple months ago effectively kept the inflation rate low.

Our Kim Do-yeon has the latest.

The government's fifth round of maximum price caps will remain unchanged from the previous round, going into effect for two weeks starting at midnight Friday.

The wholesale price per liter will be capped at 1,934 won for gasoline, 1,923 won for diesel, and 1,530 won for kerosene.

This system directly regulates the wholesale prices that domestic refiners charge gas stations, serving as a critical buffer before costs are passed on to consumers.

The market is currently feeling the strain.

As of Thursday, the national average pump price of gasoline stands at roughly 2,011 won per liter, with the Seoul average pushing higher to 2,051 won.

Diesel prices are also high, averaging 2,006 won nationally and 2,038 won in Seoul.

The Ministry of Trade, Industry and Resources stated the decision to freeze the caps prioritizes public livelihoods and aims to protect workers heavily reliant on fuel, such as truck drivers and farmers.

Officials noted there are cumulative factors that would typically warrant a price hike, driven by volatile international oil prices fluctuating around 100 dollars a barrel due to the prolonged Middle East conflict.

The impact of energy costs on the broader economy remains significant.

Government data shows consumer prices rose 2.6 percent in April, marking the highest level in one year and nine months.

Prices for petroleum products surged 21.9 percent on-year.

If petroleum were excluded, the nation's inflation rate would sit comfortably at 1.8 percent.

To ensure these wholesale price controls effectively translate to the retail level and to prevent illegal market practices,

the government is extending its ban on the cornering and hoarding of petroleum products through July.

Kim Do-yeon, Arirang News.

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2026-05-07, 20:00 (KST)