SEOUL, March 9 (Xinhua) -- South Korea planned to implement a system to cap domestic fuel prices this week as global crude oil prices surged amid escalating Middle East conflict, a senor presidential official said Monday.
Kim Yong-beom, presidential chief of staff for policy, told a press briefing that the so-called maximum petroleum price system will be launched this week by swiftly taking relevant procedures such as official notifications.
It was aimed to prevent abnormal pricing of petroleum products and ensure price predictability, Kim noted.
If implemented, it would be the first time in almost five decades since the Second Oil Shock in the mid-1970s. Since South Korea liberalized oil prices in 1997, prices have been determined by the market.
The briefing came after South Korean President Lee Jae Myung presided over an emergency meeting earlier in the day to address the impact of the Middle East conflict.
During the meeting, Lee ordered a swift implementation of the fuel price-capping system to curb a rapid surge in fuel costs at gas stations.
Lee instructed officials to prepare for worst-case scenarios by closely monitoring exchange rates, stock markets and global commodity prices, while directing the use of the 100 trillion-won (66.9 billion U.S. dollars) market stabilization program.
Global oil prices neared 120 U.S. dollars per barrel during daytime trading on Monday, while the benchmark KOSPI tumbled nearly 6 percent.
The South Korean won versus the U.S. dollar exchange rate finished its daytime session at 1,495.5 won per dollar as of 3:30 p.m. local time (0630 GMT), up 19.1 won from the previous session's daytime close. ■