President Lee Says Domestic Fuel Prices Stable Despite Rising Global Oil Prices

President Lee Jae-myung stated that domestic gasoline and diesel prices will remain stable despite a surge in international oil prices. He explained that the government's diversification of crude oil import sources has reduced dependence on the Middle East from 70% to the 50% range, along with measures such as price caps and export volume controls to manage domestic prices and supply.

On the afternoon of September 12, President Lee posted on X (formerly Twitter), "Dear citizens, do not worry. The prices of refined oil products like gasoline and diesel will continue to remain stable," adding, "You do not need to worry at all about oil prices."

A key factor behind the stability of domestic oil prices is the diversification of crude oil import sources. The government has strengthened crude oil diplomacy, including sending special envoys, and has supported long-distance oil transportation costs, successfully reducing the Middle East's share of crude oil imports to the 50% range within a few months.

To enhance the stability of crude oil supply, a strategic oil reserve swap system has been introduced. President Lee noted that this allows for maintaining supply stability without depleting strategic reserves and emphasized the ongoing commitment to diversifying import sources.

Currently, international oil prices and domestic petroleum product prices are showing opposing trends. President Lee explained that while crude oil and international refined oil prices are soaring, domestic prices and supply volumes are being kept stable through price caps and export volume controls.

To mitigate the domestic impact of rising international oil prices, the government is implementing a maximum price system for oil. The ninth maximum price, designated on August 21, is set at 1,784 won per liter for gasoline, 1,773 won for diesel, and 1,380 won for kerosene. The government is also cracking down on hoarding and collusion while promoting price competition among gas stations through the selection of 'fair gas stations.'

Domestic refiners have reported high profitability due to the rise in international refined oil prices. With the government compensating for losses from domestic price and export volume controls, the surge in international refined oil prices has led to what they describe as "the largest boom in history."

However, the prolonged instability in the Middle East remains a risk factor for crude oil supply and demand. President Lee remarked, "The dependence on the Middle East for crude oil imports is still high at 50%, and we do not know when the war will end, while the oil market is sinking into turmoil."

He added, "We will do our utmost to secure smooth oil transportation routes and ensure the safety of oil transport vessels and crews," emphasizing that "South Korea can overcome the current crisis and turn it into an opportunity."