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Insiders: South Korea Considering First Oil Price Cap System in 30 Years
Svmuu News, insiders revealed on Sunday that due to escalating conflicts in the Middle East raising concerns about rising energy prices, the South Korean government is considering implementing an oil price cap system for the first time in nearly 30 years. As the US and Israel strike Iran and Iran retaliates, global oil prices have risen accordingly. In the past, fluctuations in international oil prices typically took about two weeks to affect domestic prices, but this time they almost immediately impacted South Korea's domestic oil prices, prompting officials to begin examining the feasibility of introducing a price cap. Insiders stated that the government is cautiously weighing this option because of potential side effects such as market distortions and fiscal burdens. Previously, South Korean President Lee Jae-myung ordered that if implementing a nationwide unified oil price cap proves difficult, a price cap system should be quickly established by region and fuel type. The next day, Lee Jae-myung also warned refiners not to collude in raising gasoline prices. Following the president's instructions, the government formed an inter-departmental inspection team to crack down on illegal oil distribution, hoarding, and unfair trading practices. However, despite these measures, gasoline prices at domestic gas stations in South Korea continue to rise. (Jin10)
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