The Ministry of Trade, Industry and Resources (MOTIR) announced March 13 that the Korean government would introduce policy measures to curb the recent spike in domestic petroleum prices caused by developments in the Middle East and to limit sharp price swings in the event of a supply crisis. To that end, following consultations with relevant ministries, the government will implement a maximum price system on petroleum products.

The maximum prices will apply to refiners' supply prices for gas stations and dealers, not retail prices at gas stations. Effective from 12:00 a.m. on March 13 through March 26, 2026, the initial maximum prices are set at KRW 1,724 per liter for gasoline, KRW 1,713 for automotive diesel, and KRW 1,320 for kerosene. These are KRW 109, KRW 218, and KRW 408 lower, respectively, than the average supply prices submitted by refiners on March 11, 2026.

The government plans to adjust the maximum prices on March 27, 2026, to reflect domestic and international oil market conditions. For this adjustment, the initial maximum prices excluding taxes will serve as the base price, and taxes will be added after applying the rate of increase in international petroleum product prices over the relevant preceding period. The rate of increase will be based on the price indicators posted on Petronet by the Korea National Oil Corporation.

To help ensure the early rollout of the maximum price system for petroleum products, MOTIR will work with relevant ministries to finalize detailed standards for post-implementation settlement with refiners and strengthen monitoring and oversight of gas stations. The ministry will also continue to review support measures, including energy vouchers, for energy-vulnerable groups such as self-employed business owners and farmers.