President Lee Jae-myung has already urged citizens to conserve electricity and use public transport more often.
South Korea may impose restrictions on car usage for all citizens if the price of oil exceeds $120 per barrel, The Japan Times reports. This is how the authorities are preparing to mitigate the impact of the war surrounding Iran on the country's energy supply.
Currently, such measures are already in place for government officials. There is a scheme for government employees where cars alternate based on the last digit of their license plates: today, one group of vehicles is allowed to enter, and tomorrow, another group. If the restrictions are extended to private transport, it will mark the first such step since the Gulf War in 1991.
"We are considering the possibility of extending this system to the private sector, but we hope that the war will end soon and such measures will not be necessary," said Finance Minister Koo Yun-chul in an interview with KBS on Sunday.
Last week, President Lee Jae-myung already urged citizens to conserve electricity and use public transport more often instead of personal vehicles to avoid a potential fuel shortage amid the protracted conflict surrounding Iran.
For South Korea, the situation is particularly sensitive: the country remains one of the largest importers of oil while simultaneously exporting petroleum products to countries in Asia and beyond. This has raised concerns that rising inflation and the prolonged crisis in the Middle East will impact the economic growth of a country that heavily relies on energy supplies from the region.
At the same time, in March, South Korean exports continued to grow due to strong external demand. However, the sharp rise in global oil prices is already increasing the cost of raw materials, while worsening shipping conditions and supply disruptions are putting additional pressure on trade.
Brent crude oil, which is heading for a record monthly increase, rose another 3.7% to $116.75 per barrel on Monday morning. The reason was missile strikes by Yemeni Houthis on Israel over the weekend. Movement representatives stated that they would continue operations until attacks against Iran and its associated armed groups cease.
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