Lee vows to maintain petroleum price cap amid Mid East instability

Jul 28, 2026, 09:12 am

President Lee Jae-myung, who is on a state visit to Brasilia, Brazil, chaired a senior presidential secretaries' meeting via video link with Seoul on July 26 (local time) to directly address domestic and international issues. He instructed officials to proactively respond to rising international oil prices and inflation pressures driven by instability in the Middle East, while also ordering follow-up measures regarding the outcomes of his visit to San Francisco, U.S.

Chairing the senior presidential secretaries' meeting at a hotel in downtown Brasilia that day, President Lee noted that international oil prices are fluctuating as the situation in the Middle East becomes unstable again. He instructed officials to continue the petroleum price cap until oil price instability is definitively resolved and to maintain policy tools such as fuel tax cuts as much as possible.

He added that prompt, proactive efforts must be made to minimize the impact on domestic inflation, emphasizing that measures will also be prepared for groups facing increased burdens from rising oil prices, including truck and construction equipment drivers, farmers and fishers, and mobile workers.

Mentioning the recent exposure of collusion worth tens of trillions of won among domestic oil refiners, President Lee called on relevant ministries to thoroughly crack down on market distortion acts, such as hoarding and collusion, involving key livelihood items as well as petroleum.

He also reiterated the achievements of his visit to San Francisco, U.S. President Lee evaluated the San Francisco artificial intelligence (AI) declaration as a national call to action to propel South Korea into an irreplaceable leader driving the AI era.

During his visit to San Francisco, President Lee presented a vision to transform South Korea into a key node in the AI supply chain through the San Francisco AI Declaration. Taking the trip as an opportunity, Samsung Electronics and SK signed long-term semiconductor supply contracts worth $950 billion, or approximately 1,400 trillion won, with global big tech companies.

President Lee urged the government to make every effort in follow-up measures so that these achievements lead to a greater leap forward for the nation's economy and tangible improvements in the public's lives.

He also highlighted the significance of his South American tour, which began in earnest that day. President Lee stated that South America is a region with a massive population and abundant resources, making it essential for broadening the horizons of South Korea's diplomacy. He expressed his commitment to further strengthening Global South diplomacy through this trip and solidifying South Korea's status and role as a pivotal global nation.

Hong Sun-mi

#Petroleum #Price cap