A gas station in Seoul. [Yonhap]
A gas station in Seoul. [Yonhap]

Even as the risk of a full-scale resumption of armed conflict between the United States and Iran looms, the South Korean government said short-term crude oil supply faces no immediate problems.

Six South Korea-bound oil tankers have passed through the Strait of Hormuz since the US and Iran signed an end-of-war MOU on July 17 — three arrived last week and three more are expected this week.

The Ministry of Trade, Industry and Energy said in a Middle East War Response Headquarters briefing Tuesday that it has secured more than 110 percent of last year's average crude oil supply for July and August, up 10 percentage points from the previous target of 100 percent.

The ministry also said it has secured roughly 90 percent or more of last year's September crude import volume. As of Sunday, the ministry had secured 74 percent of the September import target compared with the same period last year.

The government and domestic refiners plan to continue bringing in alternative crude supplies via routes that bypass the Strait of Hormuz to stabilize supply.

The government introduced an oil price cap system on March 13 to curb sharp domestic fuel price increases stemming from the Middle East war and has maintained it for more than four months. On June 27, it lowered the seventh oil price cap by 150 won per liter and said it would consider ending the system depending on future international oil price trends. Current refinery supply prices stand at 1,784 won per liter for regular gasoline, 1,773 won for diesel and 1,380 won for kerosene.

With international oil prices rising again amid the US-Iran armed conflict, however, plans to end the oil price cap system have been put on hold for now. The government is set to announce the eighth oil price cap on Friday.

Meanwhile, the ministry held a ceremony Monday at Government Complex Sejong to recognize contributions to stabilizing crude oil and naphtha supply through the operation of the oil price cap system, the creation of a strategic petroleum reserve swap program and support for diversifying crude import sources. Kim Jong-cheol, director general for resource industry policy, and 24 others received a combined 91 million won ($61,400) in prize money.

Industry Minister Kim Jung-kwan said, "As uncertainty over the recent Middle East situation is once again intensifying, the ministry will conduct a more thorough review of the entire energy and resource supply chain."


oskymoon@heraldcorp.com