EL7.AI
CommoditiesMedium•25 October 2026•
2 min read

South Korea Extends Fuel Price Cap for 11th Period by Four Weeks

Key Facts

1South Korea’s 11th price cap period took effect on October 17 and lasted four weeks, with the cap unchanged from the previous period.
2Consumer inflation was 2.9% in September, while petroleum product prices rose 14.8% year over year.
3Brent stood at $105.9 per barrel on October 15, compared with $107.0 for Dubai crude and $98.0 for West Texas Intermediate.
4The ministry plans to complete the determination of refinery loss settlement prices by the end of November.

South Korea’s 11th fuel price cap period took effect at midnight on October 17 and lasted four weeks, according to SBS News. The government kept fuel price ceilings unchanged from the previous period. The Ministry of Trade, Industry and Energy said the decision took into account the cost-of-living burden and oil supply and demand conditions. The ministry added that it is closely monitoring global oil price trends. The extension comes as domestic petroleum product prices rose at a faster annual pace than overall inflation in September.

South Korea’s consumer price inflation was 2.9% in September, after being within the 3% range the previous month, according to data reported by SBS News. But petroleum product prices rose 14.8% year over year in the same month. Keeping the retail cap at its previous level means prices remain administratively set while energy costs stay high. The ministry attributed its decision to the cost-of-living burden, as well as the state of oil supply and demand. It also said it monitors international oil price movements when deciding on price ceilings.

The current cap level had been in place since the seventh period, when prices were cut by 150 won per liter following an agreement to end the war between the United States and Iran in late June, according to SBS News. On October 15, Brent crude stood at $105.9 per barrel, Dubai crude at $107.0 and West Texas Intermediate at $98.0. International petroleum product prices were $133 per barrel for gasoline and $170 for diesel, according to figures published on October 16. These international prices provide the backdrop as the government continues to review the retail cap while taking the cost of living into account. The latest decision extended the cap for another four weeks without changing the previous period’s levels.

The next step is to settle refinery losses for the period from March 13 to June 30. The ministry said it had received cost and loss-claim data from every refinery by September 30. It plans to establish common standards through the Senior Settlement Committee, then complete the determination of settlement prices by the end of November. After that, it plans to disburse compensation and settle losses for subsequent quarters in turn, according to SBS News. The schedule makes the end of November an imminent deadline for completing the determination of refineries’ entitlements for the period in question.