Han Jung-ae, policy committee chair of the Democratic Party of Korea, claimed that domestic oil reserves are ample and that gas station price hikes are not caused by supply disruptions. The remarks suggest the gas station industry has unreasonably expanded price increases, citing supply disruptions from the Middle East situation as a pretext.
Han made the remarks at a floor leadership meeting at the National Assembly on the 10th.
Han explained the conditions for releasing strategic reserves, stating that domestic oil reserves are sufficient. "Strategic reserves are released in two situations: coordinated release, which is triggered when supply shortages exceed 7% of total consumption among member countries, and unilateral release, which our government decides independently based on supply disruptions," she said. "Korea has released strategic reserves five times in coordination with the international community, including during the 2022 Russia-Ukraine war. Our current reserve levels significantly exceed International Energy Agency recommendations."
According to Korea National Oil Corporation data, Korea maintains oil reserves equivalent to 206 days of consumption. This is more than double the IEA's 90-day guideline.
"Despite no supply shortage occurring, oil prices are surging to levels unseen in 10 years," Han said. "Normally there is a two-to-three-week lag between crude prices and domestic gas station prices, but even that lag has disappeared. This indicates causes other than actual supply disruptions."
Han pledged strong action against market manipulation. "Oil prices have significant ripple effects on logistics and daily necessities, requiring swift response for price management," she said. "The president has ordered rapid introduction and bold implementation of price caps, so speed is now a livelihood issue. We will mobilize all means to focus entirely on supply stabilization."
