Core Viewpoint - The South Korean government has implemented a "petroleum price cap system" for the first time in nearly 30 years to stabilize domestic oil prices amid rising costs influenced by tensions in the Middle East [1][4]. Group 1: Implementation of Price Cap - The price cap system officially took effect on March 13, with the first price limits set at 1,724 KRW (approximately 7.96 CNY) per liter for regular gasoline, 1,713 KRW (approximately 7.91 CNY) for diesel, and 1,320 KRW (approximately 6.10 CNY) for kerosene [1]. - The government will adjust the price caps every two weeks based on international oil price movements, focusing on the supply prices set by refining companies rather than directly capping retail prices at gas stations [2][4]. Group 2: Legal and Economic Context - This action marks the first use of the price cap under the Petroleum Business Act since the liberalization of oil prices in 1997, allowing the Minister of Trade, Industry and Energy to set price limits during significant international oil price fluctuations that threaten economic stability [4]. - To prevent supply shortages due to the price cap, the government mandates that refining companies must supply at least 90% of the oil volume they provided in March and April of the previous year [4]. Group 3: Government and Public Response - President Lee Jae-myung has called on the public to actively monitor the implementation of the price cap system and report any instances of price gouging or improper profit-seeking [6]. - The Ministry of Trade, Industry and Energy reported that on the first day of the new system, oil prices showed signs of stabilization, with a task force established to conduct nationwide inspections, resulting in the identification of 20 violations [6]. - South Korea relies heavily on imports for its energy needs, with approximately 70% of its oil and 20% of its liquefied natural gas sourced from the Middle East, highlighting the economic burden posed by the ongoing regional crisis [6].