South Korea says it will introduce a cap on domestic fuel prices from Friday in an effort to shield consumers from surging energy costs linked to the conflict in the Middle East.

The government has set the maximum wholesale price for petrol at 1,724 won per litre, down from Wednesday’s level of 1,833 won. Officials said the ceiling will be reviewed every fortnight to reflect movements in global oil prices.

According to the government, the cap will be calculated using supply prices from before the Iran crisis, alongside international crude prices and tax levels.

South Korea remains heavily dependent on imported energy, with data from the Korea International Trade Association showing it sources around 70% of its oil and 20% of its liquefied natural gas from the Middle East.

Seoul has also moved to curb stockpiling, ordering refiners to release at least 90% of the monthly volume of petroleum products they supplied in March and April of the previous year.