17 hours ago
Govt. urges freeze of gas prices following Israel-Iran ceasefire
The Seoul government called on the local petroleum industry to restrain from hiking its prices Friday, stressing that global oil prices have been stabilizing after Israel and Iran agreed to a ceasefire.
The call was made in a meeting with industry officials and gas station operators.
Brent crude prices once spiked to US$78.9 per barrel last Thursday, but dropped back to $67.7 as of Wednesday, a level similar to that seen before Israel's air strike on Iranian military and nuclear facilities earlier this month, according to the Ministry of Trade, Industry and Energy.
Brent traded at $63.9 per barrel on May 30, before the military tensions between the two Middle Eastern nations escalated.
Despite the recent price hikes, the ministry asked the local industry leaders not to excessively reflect the global price increases in their domestic prices to help minimize additional burden on the people's livelihoods, it said.
Prices of gasoline here rose to 1,669 won ($1.23) per liter on Wednesday from 1,630 won in the first week of this month, while prices of diesel increased to 1,532 won from 1,494 won over the same period.
International oil prices are expected to hover around the mid-$60 range in the second half of this year, the ministry said, citing forecasts from global investment bank Goldman Sachs and other institutions.
The Seoul government decided last week to extend its fuel tax cuts, originally set to end in June, through August, as part of efforts to stabilize domestic oil prices.
The ministry said it plans to operate an interagency task force to intensively monitor the oil market over the next two weeks and take measures to minimize oil price hikes.
"Petroleum products are essential in people's daily lives, and the role of the oil industry is crucial in easing the burden on people's livelihoods," said Lee Ho-hyeon, head of energy policy at the industry ministry. (Yonhap)
