West Asia tensions: South Korea urges oil refiners to avoid excessive price hikes

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Industry Minister Kim Jung-kwan on Monday called on major oil refiners to refrain from excessively raising prices amid a recent surge in international crude oil prices due to the ongoing Middle East situation, his office said.

"We ask that transparent and fair petroleum pricing be implemented to ensure that the burden of rising international oil prices due to the recent situation in the Middle East is not unilaterally or excessively passed on to consumers," Kim said in a meeting with oil refinery industry representatives and related authorities in Seoul, according to the Ministry of Trade, Industry and Resources.

Officials from SK Energy, GS Caltex, S-Oil, and HD Hyundai Oil Bank attended the meeting, reports Yonhap news agency.

Kim noted that although domestic oil prices normally reflect a change in global oil prices with a two-week term, prices here have escalated swiftly after the United States and Israel initiated airstrikes against Iran last week.

The minister warned that any attempts to take advantage of rising international oil prices in a way that undermines efforts to stabilise people's livelihoods will be met with grave responses.

The average gasoline price in Seoul topped 1,900 won (USD 1.28) per litre for the first time in nearly four years on Friday and further rose to 1,945 won as of Sunday, according to data compiled by the Korea National Oil Corp.

Amid public criticism, the Korea Oil Station Association earlier said the primary reason behind the recent jump in domestic fuel prices was the supply price hike by oil refineries.

The government has issued a precautionary alert on a possible resources crisis last week to preemptively respond to volatility in the energy market amid continuing turmoil in the Middle East, working to secure additional oil supplies from regions other than the Middle East and devising a detailed plan for the potential release of oil reserves.

The government is also conducting an intensive crackdown on unfair market practices involving energy supplies while considering adopting a price cap system for oil for the first time in nearly 30 years.

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