Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol announced that the government will reveal the sixth oil price cap at 7 p.m. on May 21, in response to inflation concerns stemming from the prolonged conflict in the Middle East. He also stated that the government will immediately begin revising the enforcement decree of the Price Stabilization Act.
During the ninth meeting of the Special Task Force on Price Management held at the Government Seoul Building, Koo noted, "As uncertainties from the Middle East conflict persist, producer prices continue to rise, and there is increasing upward pressure on consumer prices. The government will do its utmost to stabilize prices and minimize the burden on the public."
The sixth oil price cap, which will take effect at midnight on May 22, will be announced based on a comprehensive assessment of international oil price trends and the economic burden on the public. Koo explained, "We will consider various factors, including international oil prices and the burden on households and the government."
Additionally, the government will extend the fuel tax reduction measure, originally set to expire at the end of this month, until the end of July. This extension aims to alleviate the financial burden on consumers amid increased volatility in international oil prices due to the ongoing conflict.
The meeting also addressed measures to enhance the effectiveness of price stabilization initiatives. The government plans to strengthen penalties and recovery systems for violations of the Price Stabilization Act, including prohibiting hoarding and price collusion.
Koo emphasized, "We will revise the Price Stabilization Act to ensure that items facing supply concerns are distributed more swiftly and that illegal profits are thoroughly recovered."
The government intends to implement measures that will impose orders and fines on those found violating price stabilization regulations, and in cases requiring urgent supply, confiscated goods may be sold immediately. Furthermore, a new system for imposing fines exceeding unjust profits and a reward system for reporting violations will be established to enhance private monitoring.
Koo reiterated, "We will promptly begin revising the enforcement decree of the Price Stabilization Act and push for legislative changes as quickly as possible."
The meeting also revealed the results of an investigation into price collusion among seven flour mills. The Fair Trade Commission plans to impose a record fine of 671 billion won for collusion on flour prices. The government will closely monitor any price increases that may exploit the rising costs due to the Middle East conflict.
* This article has been translated by AI.
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