S. Korea to decide on extending fuel price caps before Thursday deadline

South Korea's prime minister said Tuesday the government will decide whether to extend temporary fuel price caps before they expire April 24, citing confirmed benefits to consumers and oil-sensitive industries since the policy took effect in mid-March.

The decision matters for Korean-American households and Korean-owned businesses in Southern California that closely track South Korean economic policy, as fuel price stability in Korea affects the broader export economy and consumer sentiment among families with financial ties to the peninsula.

Prime Minister Kim Min-seok made the announcement during a government meeting focused on the economic impact of the ongoing Middle East conflict, the Korea Times reported.

Under the current system, price ceilings for fuel supplied by domestic oil refineries to gas stations are set at 1,934 won per liter for regular gasoline, 1,923 won per liter for diesel and 1,530 won per liter for kerosene. Prices are updated every two weeks.

"There are various opinions about the effectiveness of the maximum price system, but what is clear is that with its implementation, positive effects have been confirmed, such as the prevention of price spikes, eased decline in consumer spending and reduced shock to cargo truck drivers and other sectors sensitive to oil prices," Kim said, according to the Korea Times.

If approved, the measure would enter a fourth round. Kim said the government would weigh those benefits against the range of views on the policy's overall effectiveness before reaching a final decision.

"The government will decide whether to carry out a fourth round of the maximum price system by fully and carefully considering the positive effects and diverse opinions," Kim said.

The fuel cap system was introduced in mid-March 2026 in response to supply disruptions tied to the Middle East conflict. Thursday's deadline marks roughly six weeks since the policy first took effect.