South Korea keeps fuel cheap for holidays as fiscal cost mounts

South Korea isn’t alone in shielding motorists from the global energy shock, but its intervention is among the more direct in the developed world. | BLOOMBERG

By Soobin Kim
BLOOMBERG

Sep 23, 2026

With millions of South Koreans set to hit the road this week during a three-day public holiday, the government is extending fuel-price caps, cushioning households from an energy shock that has pushed global oil prices above $100 a barrel.

But the relief is increasingly coming at a cost.

South Korea is one of the few developed economies to have taken extraordinary steps to shield its motorists from rising oil prices, effectively capping prices for gasoline and diesel at the pump while promising to compensate refiners for their losses.

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