Seoul, March 26 (IANS) President Lee Jae Myung on Thursday urged the nation to cooperate on energy-saving efforts as the prolonged war in the Middle East has disrupted global energy markets, but pledged no change in electricity prices.

Lee made the remarks during an emergency economic response meeting, as the government is set to impose another round of a fuel price cap to help protect the nation's economy from impacts from the US-Israel war with Iran, reports Yonhap news agency.

"(I) urge gas stations to actively cooperate in setting prices in line with the intended purpose of the oil price cap system," Lee said.

"Taking advantage of a national crisis to seek unfair profits through practices such as collusion and hoarding will not be tolerated and the government will continue to respond strictly under a zero-tolerance principle," Lee said.

Lee said the government will not raise electricity bills for now, but emphasised the need to conserve electricity, which is supplied by the state-run Korea Electric Power Corp. (KEPCO).

"The government does not plan to adjust electricity rates for now, but keeping them at the current level could significantly widen KEPCO's losses," Lee said.

He warned that greater reliance on electricity over petroleum-based products could further deepen KEPCO's financial burden and ultimately add pressure on government finances.

KEPCO has accumulated about 206 trillion won (US$136.9 billion) in debt after supplying electricity below production costs, even as global energy prices surged between 2021 and 2023 following the Russia-Ukraine War.

As part of an energy-saving campaign, Lee urged the public sector to actively adopt a five-day vehicle license plate rotation system and encouraged citizens to use public transportation.

He also instructed officials to draw up a detailed supplementary budget to prepare for the broader economic impact of a prolonged conflict, as the ruling Democratic Party plans to submit the extra budget bill to the National Assembly next Tuesday.

—IANS

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