Ruling Party, Government Say 80% of High Oil Price Aid Paid Out; Price Cap Helped Curb Inflation

The ruling party and the government said May 7 that relief payments aimed at easing household strain from high oil prices triggered by the Middle East war have been carried out at about the 80% level. They also said a price cap helped offset a significant share of inflation pressures.

The Democratic Party’s special committee on economic responses to the Middle East war held its fifth meeting with the government at the National Assembly on May 7 to review measures including the high oil price relief program and the price cap.

Rep. Ahn Do-geol, the committee’s secretary, told reporters after the meeting that about 3.8 trillion won of the 4.8 trillion won budget had been executed through the Ministry of the Interior and Safety, or roughly 80%. He said the key issue is whether the money is reaching eligible recipients, and by that measure 1.4 trillion won has been paid out, adding that the rollout appears to be proceeding smoothly.

Ahn said that as tensions in the Middle East continue to push prices higher, the price cap on petroleum products and fuel tax cuts helped keep April’s inflation rate lower.

“Without the price cap and fuel tax cuts, April’s inflation rate would have been 3.8 percentage points, 1.2 points higher than the 2.6 points actually recorded,” Ahn said. He added that the measures are helping reduce about one-third of the rise in prices.

He said the government’s swift response to stabilize oil prices, which affect production costs and consumer prices, is helping keep living costs steady.

The party and the government also said they received a briefing from the Financial Services Commission on lowering card transaction fees for gas stations.

Ahn said card companies, gas stations and the Korea Petroleum Distribution Association presented sharply different positions and no conclusion was reached. He said further talks are needed and that the Democratic Party decided to work to mediate.




* This article has been translated by AI.

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