Korea freezes fuel price caps as Middle East tensions keep oil above $100

South Korea's industry ministry said Friday it will freeze the country's maximum petroleum product prices at their previous levels for another four weeks, as Middle East tensions and crude prices above $100 a barrel keep pressure on domestic fuel costs.

The eleventh round of the ceiling takes effect from midnight on Saturday, holding gasoline at 1,784 won per liter, diesel at 1,773 won and kerosene at 1,380 won, unchanged from the tenth round. The ministry attributed the decision to shipping attacks by Iran in the Strait of Hormuz and Houthi strikes on Saudi airports and oil facilities.

Brent crude stood at $105.9 a barrel and Dubai crude at $107.0 as of Oct. 15, while West Texas Intermediate was at $98.0.

The freeze comes even as broader inflation has cooled. South Korea's consumer price growth slowed to 2.9 percent in September, yet petroleum product prices still rose 14.8 percent from a year earlier despite the price ceilings already in force.

Imports of crude for October and November have been secured at more than 100 percent of last year's average, leaving no disruption to the country's oil supply.

The government is also weighing a request from refiners to ease restrictions on exports of petroleum products, which the industry has sought as domestic consumption declines. The ministry said it will look for ways to manage export volumes as long as they do not create problems for domestic supply.