Gov’t to extend ban on petroleum hoarding for another 2 months amid prolonged Middle East conflict

By Kim Han-joo

SEOUL, May 7 (Yonhap) — The government will extend its ban on hoarding petroleum products for another two months amid continued supply concerns stemming from the standoff in the Middle East, Finance Minister Koo Yun-cheol said Thursday.

In March, the government announced a temporary ban on the hoarding and stockpiling of petroleum products to prevent unfair practices. The measure was originally set to expire next Tuesday.

“The notice banning the hoarding of petroleum products will be extended by two months through July to prevent unfair practices, such as refusing sales under the guise of the petroleum price ceiling,” Koo said while presiding over a ministerial-level economic policy meeting.

Koo also said the government would introduce additional measures, such as actively utilizing a reward program, to crack down on hoarding and other unfair practices.

The latest measure is part of the government’s ongoing efforts to ensure a stable supply of essential goods, including food and medical supplies.

Earlier, U.S. President Donald Trump raised the possibility that a peace agreement with Iran could be reached before his trip to China next week. Washington and Tehran are reportedly working on a one-page memorandum aimed at ending the conflict and establishing a framework for detailed nuclear negotiations.

“There was also positive news this morning that the United States and Iran are pursuing a memorandum of understanding for a ceasefire, and we are closely monitoring the situation,” Koo said.

Another measure includes stricter enforcement against violations of the tariff-rate quota system applied to critical necessities.

The tariff-rate quota system allows a certain volume of imports to be subject to lower tariff rates within a specified limit. Under the system, tariffs on selected items, mostly essential goods, can be reduced by as much as 40 percentage points.

Under the latest measures, starting Friday, the mandatory release period for imported sugar subject to tariff-rate quotas will be shortened from the current six months to four months.