Lead
South Korea will lower the cap on fuel prices to reflect the recent decline in global crude oil prices, Finance Minister Koo Yun-cheol said Friday, while also freezing electricity and gas rates in the second half of the year.
Speaking during a meeting with economy-related ministers, Koo said the price cap system will remain in place until consumer prices are fully stabilized. The government introduced fuel price caps in mid-March to stabilize domestic fuel prices amid supply chain disruptions caused by the conflict in the Middle East.
Coverage Comparison
All five reports from Yonhap News — English, the sole news organization covering this story in the provided material, consistently report the government's decision to lower fuel price caps and freeze utility rates. The reports provide different levels of detail, with some focusing on the broader economic measures and others on the specific price adjustments.
One report, dated June 26, 2026, notes that the maximum prices for regular gasoline, diesel, and kerosene supplied to gas stations by local oil refiners will each be lowered by 150 won. The new price for regular gasoline will be 1,784 won per liter (US$1.16), diesel will be 1,773 won per liter, and kerosene will be 1,380 won per liter. These new prices took effect Saturday.
According to the Ministry of Trade, Industry and Resources, the decision to lower the caps was made to preemptively reflect the decline in global crude oil prices. The ministry also stated that the latest prices will remain in effect for four weeks, with plans to adjust the pricing cycle flexibly depending on changes in market conditions.
All reports attribute the easing of fuel price pressures to the memorandum of understanding (MOU) between the United States and Iran. The ministry said that following the MOU, the number of oil tankers passing through the Strait of Hormuz has increased, and uncertainties surrounding the geopolitical situation in the Middle East have eased to some extent.
Koo Yun-cheol, in his remarks, noted that external uncertainties have been gradually easing following the MOU, but emphasized that "uncertainties still remain surrounding follow-up negotiations," with burdens on the public such as high consumer prices, the weak Korean won, high interest rates, and slowing employment continuing.
Key Claims
- The government will lower price ceilings on regular gasoline, diesel, and kerosene by 150 won per liter, effective Saturday. (Reported by Yonhap News, with specific figures: gasoline at 1,784 won, diesel at 1,773 won, kerosene at 1,380 won.)
- The government will freeze electricity and gas rates in the second half of the year, as stated by Finance Minister Koo Yun-cheol.
- The price cap system will remain in place until consumer prices are fully stabilized.
- The government aims to keep inflation at around 3 percent in the second half.
- External uncertainties have been easing following the MOU between Washington and Tehran, with an increase in oil tankers passing through the Strait of Hormuz.
- Petroleum product prices rose 24.2 percent on-year in May, contributing 0.92 percentage point to the overall consumer price increase, according to data mentioned in one report.
- The industry ministry plans to adjust the pricing cycle flexibly depending on market conditions.