Seoul, March 16 (IANS) Fuel prices at gas stations have dropped significantly since the government introduced a temporary price cap system last week, the industry ministry said on Monday, vowing continued efforts to ease energy supply woes due to the Middle East crisis.

The average gasoline price at gas stations nationwide came to 1,840.1 won (US$1.23) per litre as of Sunday, down 58.7 won from Thursday, a day before the price ceiling system took effect, according to data compiled by the Ministry of Trade, Industry and Resources, reports Yonhap news agency.

The average retail diesel price dropped 77.8 won to 1,841.2 won per litre over the same period.

The price decrease came after the government on Friday implemented a price cap system on products oil refineries supply to gas stations. The system was introduced to help ease cost burdens related to soaring fuel prices in light of supply concerns due to the conflict in the Middle East.

The initial price ceiling was set at 1,724 won per litre for regular gasoline, 1,713 won per litre for diesel and 1,320 won per litre for lamp oil. The threshold will be readjusted every two weeks to reflect changes in international oil prices.

In a meeting with industry officials on Monday, Industry Minister Kim Jung-kwan said retail prices of fuel products are falling at a slower-than-expected pace, stressing that once the gas stations run out of their existing inventories, purchased before the price cap system, retail prices should go lower.

Kim also said the government will mobilise “all available resources” so that consumers can feel the effects of the maximum price system at gas stations, vowing continued monitoring of oil prices and on-site inspections to crack down on unfair market practices.

The government will also provide incentives to consumer-friendly gas stations that offer fair prices, he added.

—IANS

na/