President Lee Jae-myung presides over a Cabinet meeting combined with an emergency economic review session at Cheong Wa Dae on Tuesday. [Yonhap]
President Lee Jae-myung presides over a Cabinet meeting combined with an emergency economic review session at Cheong Wa Dae on Tuesday. [Yonhap]

The government will lower its crude oil resource security crisis alert from "Alert" — the third of four levels — to "Caution," the second level, as concerns over supply shortages ease following the start of end-of-war negotiations in the Middle East. The change will relax the odd-even vehicle restriction on public-sector vehicles to a day-of-the-week rotation, and the day-of-the-week restriction on public parking lots will be lifted entirely.

The crisis alert for natural gas will be fully lifted from its current "Caution" level.

Moon Sin-hak, vice minister of Trade, Industry and Energy, announced the changes Tuesday at the 28th Cabinet meeting combined with the 13th Emergency Economic Review Session. "We will downgrade the resource security crisis alert after comprehensively considering supply and demand stability, public inconvenience caused by the alert, and broader economic ripple effects," he said.

He added that the crude oil alert would be lowered from the current third-level "Alert" to the second-level "Caution," while the alert for liquefied natural gas would be lifted entirely.

Moon also said that as supply conditions improve, several support measures would be discontinued as of Tuesday. These include expanded freight cost differential support for crude oil imports, drawdowns from strategic petroleum reserves, and expanded support for alternative naphtha imports. "What will remain from the Middle East crisis stabilization measures are the naphtha and petrochemical product supply measures and the price ceiling system," he said.

However, the government plans to maintain the naphtha and petrochemical product supply measures through next month, as the possibility of intermittent supply chain bottlenecks for certain items has not been fully ruled out despite the overall recovery in supply conditions.

Moon said the Ministry of Climate, Environment and Energy would ease the odd-even vehicle restriction on public vehicles to a day-of-the-week rotation and lift the day-of-the-week restriction on public parking lots.

He added that the government would strengthen market monitoring alongside consumer groups and public institutions to ensure the effects of the price ceiling reduction are quickly reflected in the market. "The government and private sector will work together to swiftly advance medium- and long-term tasks, including diversifying import sources, strengthening stockpiling capacity, and expanding global resource cooperation to bolster industrial resource security," he said.


oskymoon@heraldcorp.com