Industry ministry denies six-month deadline for oil price cap

The industry ministry said Monday it never announced a six-month expiration date for the petroleum price cap system, contradicting media reports that the measure would expire Saturday night.

The government introduced the cap on March 13 to minimize the impact of Middle East conflict-driven international oil price volatility on domestic livelihoods and the economy. Officials stated they plan to review ending the system only when regional tensions ease, global prices stabilize, and oil tanker passage becomes smooth.

A newspaper article claimed the government had initially planned to compensate refineries for losses in three quarterly installments ending in June, September and November, but failed to complete even the first settlement due to disagreements with oil companies.

Officials stated that the dates cited in the report—end of June, September and December—represent the conclusion of settlement target periods, not the actual timing for disbursing financial support.

The ministry emphasized that it has been proceeding without disruption to establish loss-compensation procedures since the first period ended in June, including enacting relevant regulations and operating a maximum price settlement committee.

Contrary to claims that negotiations between the government and refiners have stalled, the ministry reiterated its principle of compensating losses based on production costs and other factors. Experts in the oil market, accounting and legal fields are currently discussing specific support measures within the committee.

Once refineries submit their cost data, the committee plans to review the figures and distribute the financial support for losses before the end of the year.