The ruling party and the government on April 27 reviewed economic response measures as the war in the Middle East drags on. They said it could take more than a year for energy supplies and global oil prices to return to pre-crisis levels, but assessed that there is no immediate problem with energy supply. They also said an auto insurance discount tied to participation in a driving-day program will be launched next month to ease the burden on households hit by high oil prices.
The National Assembly’s special committee on economic responses to the Middle East war said it discussed the issues at its fourth meeting held at the Assembly. Committee Chair Yu Dong-su said the prolonged conflict is expected to require more than a year for energy supply conditions and international oil prices to recover to earlier levels, but added he believes the government is “defending well” against supply-related risks.
Rep. Ahn Do-geol, the committee’s secretary, told reporters after the meeting that there were no problems securing crude oil supplies and building naphtha stockpiles. He said 80% of the volume needed for May crude oil supply had been secured, and that with 2.1 million tons of naphtha secured for the year, about 85% to 90% of May needs were covered, allowing for stable supply.
On urea solution, Ahn said about three months of inventory has already been secured, but some companies have reported shortages of vehicle-grade urea solution. He said the Public Procurement Service began releasing public stockpiles to companies facing shortages starting on the 23rd. He also said a 25% cut in fuel tax on liquefied petroleum gas (LPG) butane, which is expected to rise in price, is scheduled to take effect next month.
The committee said financial support efforts tailored to sectors such as banking, insurance and capital finance are also continuing.
Separately, the ruling party and the government announced an auto insurance rider offering a discount for vehicles participating in the driving-day program, following consultations with the nonlife insurance industry. Applications for the rider will open in May for personal auto policies, and the discount will be applied retroactively starting April 1. Subscribers will receive a 2% discount on their annual auto insurance premium.
Ahn said 17 million vehicles — 67% of the nation’s 26 million vehicles — would benefit from the discount, calling it a meaningful amount compared with the pace of rising auto insurance premiums. Yu said the discount rider could help ease public anxiety as people face economic hardship from high oil prices.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.