Starting at midnight on the 13th, South Korea will implement a maximum price system on oil products, a policy measure last seen three decades ago. This approach allows the government to directly control market prices, aimed primarily at curbing the inflation surge linked to the aftermath of the Russia-Ukraine war. While experts believe this could be effective in providing immediate price relief for consumers and small businesses, there are significant concerns about the potential long-term impacts on price-setting structures and the fiscal responsibility placed on the public sector.

The maximum price system will be applied to the prices at which oil refining companies supply gas stations and distribution agencies, specifically capping gasoline prices at 1,833 won, diesel at 1,930 won, and kerosene at 1,730 won. This pricing strategy not only seeks to address the recent hikes in domestic fuel costs but also adjusts every two weeks based on fluctuations in international oil prices and other taxation elements. Importantly, the government will consider the lag in domestic price adjustments relative to international markets, indicating an ongoing need for careful monitoring as geopolitical crises evolve.

Experts such as Sungkyunkwan University's Mun Joo-hyun recognize the potential short-term benefits of this policy but emphasize the importance of establishing complementary measures to address the anticipated sustained economic challenges stemming from ongoing global conflicts. Without adequate long-term strategies, the maximum price system could inadvertently create market distortions that impose heavier financial burdens on the South Korean public in the future. Hence the consensus among policy analysts is a balance must be struck to ensure both immediate relief and sustainable economic health.