South Korea Extends Fuel-Price Caps Through Chuseok Holiday

September 23, 2026 at 02:00 AM2 min

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South Korea's Ministry of Trade, Industry and Resources kept fuel-price caps unchanged for another four weeks on Friday, citing rising consumer inflation and Middle East oil volatility. The extension cushions motorists during the Chuseok holiday that starts Thursday, even as economists question the fiscal cost of shielding households from oil above $100 a barrel.

Key Facts

South Korea's Ministry of Trade, Industry and Resources kept fuel-price caps unchanged for another four weeks on Friday.
The caps were imposed in March after the US attacked Iran, the first use of the emergency tool in three decades.
Global oil prices have risen above $100 a barrel.
The Chuseok holiday starts Thursday, with millions of South Koreans expected to travel.
President Lee Jae Myung's approval rating has fallen to a record low amid cost-of-living pressures.

Fuel-Price Cap Extension

The Ministry of Trade, Industry and Resources kept the caps unchanged for another four weeks on Friday. The ministry cited rising consumer inflation and oil-price volatility from Middle East uncertainties. The caps were imposed in March after the US attacked Iran, marking the first use of the emergency tool in three decades. The measures have stretched beyond the six months initially budgeted. The government has also rolled out discounts at highway gas stations for the holiday period.

Fiscal Cost Concerns

South Korea is effectively enjoying cheap gasoline but has yet to receive the receipt, said Lee Hong, an associate research fellow at the Korea Institute for Industrial Economics and Trade. Economists are questioning how long the government can shield motorists without straining public finances and distorting the market. Keeping fuel artificially cheap may reduce the incentive for consumers to cut back, experts warn. South Korea remains one of the world's biggest energy importers and is exposed to the global oil shock.

Inflation and Political Pressure

Inflation remains well above the Bank of Korea's 2% target. Households are grappling with broader cost-of-living pressures that have pushed President Lee Jae Myung's approval rating to a record low. The Chuseok holiday, which starts Thursday, adds to household expenses and fuel demand as many South Koreans travel to visit family.