Seoul, June 26 (IANS) South Korea will lower the cap on fuel prices to reflect the recent decline in global crude oil prices, the finance minister said on Friday, while freezing electricity and gas rates in the second half this year.

Finance Minister Koo Yun-cheol made the remarks during a meeting with economy-related ministers, noting the cap system will remain in place until consumer prices are fully stabilised.

Details of the adjustment to the cap were expected to be announced later Friday, reports Yonhap news agency.

In mid-March, the government introduced fuel price caps in a bid to stabilise domestic fuel prices amid supply chain disruptions caused by the conflict in the Middle East.

“The government will adjust the emergency measures currently in place in phases by closely monitoring developments in the Middle East and the South Korean economy,” Koo said.

Koo noted external uncertainties have been gradually easing following the memorandum of understanding (MOU) between Washington and Tehran.

“However, as uncertainties still remain surrounding follow-up negotiations, burdens on the public, such as high consumer prices, the weak Korean won, high interest rates and slowing employment, continue,” Koo said during the meeting.

The finance minister added that the government aims to keep inflation at around 3 percent in the second half.

“We will freeze prices of major utilities, such as electricity and gas,” Koo said.

“The government is making proactive efforts to stabilise and improve people’s livelihoods, while making full-fledged efforts to normalise and advance the economy following the war in the Middle East,” he added.

The finance ministry said South Korea will also implement discount programs for agricultural and fishery products in July and August, along with measures such as expanding imports of fresh eggs and mackerel.

—IANS

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