Save ‘Every Drop of Fuel’ South Korea Urges, as Iran Crisis Hits

Article content(Bloomberg) — South Korean President Lee Jae Myung urged citizens to “save every drop of fuel,” ramping up an official call for energy conservation as the deepening Iran conflict hits the energy-importing nation hard, straining households and businesses. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentIn a parliamentary address Thursday, Lee sharpened earlier appeals for restraint in fuel use, signaling a heightened sense of urgency as the government moves to contain the economic fallout from surging energy prices and prolonged supply disruptions. He warned that the Middle East crisis has triggered one of the most severe energy security threats in decades.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle content“I earnestly appeal to all citizens to actively participate in energy-saving movements in daily lives, such as taking public transportation and conserving electricity,” Lee said. “The current crisis is not a passing shower that quickly subsides, but rather a massive storm whose duration is uncertain, making it all the more severe.”Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe remarks come as his administration proposed a 26.2 trillion won ($17 billion) supplementary budget, aimed at cushioning the shock from surging fuel costs, supporting vulnerable households and stabilizing supply chains. The package is designed to respond to a sharp spike in oil prices, with Brent crude jumping more than 40% in March. Article contentThe government has already taken unprecedented steps, including imposing a fuel price cap for the first time in nearly three decades, and expanding fuel tax cuts to ease the burden on the public and companies. Authorities have also stepped up efforts to secure alternative energy supplies, and manage key inputs such as naphtha and urea, which are critical to industrial production.Article contentThe extra budget allocates more than 10 trillion won to offset high energy costs, including subsidies and direct support to households, while additional funds will be used to support small businesses, young workers and sectors hit by rising logistics and input costs. Lawmakers are set to vote on it by April 10.Article contentArticle contentLee framed the fiscal response as both a crisis measure and a structural pivot, saying the government will accelerate investment in renewable energy and strengthen supply chain resilience to lower dependence on external shocks. Article contentEconomists say the stimulus could help support growth in the near term, but warn it may also add to inflation risks as higher energy prices feed through to the broader economy. The government has sought to limit market impact by funding the package largely through excess tax revenue rather than new bond issuance.Article contentAt a meeting of financial authorities Thursday, including the finance minister and the Bank of Korea governor, officials said the extra budget is expected to raise growth by about 0.2 percentage point and have a limited impact on inflation, given the negative GDP gap and its focus on supporting vulnerable sectors.Article content“If we save every drop of fuel, avoid wasting even a single plastic bag, and add a spirit of mutual consideration and collective resolve, we can emerge from the tunnel of crisis safely and swiftly,” Lee said.Article contentTrending U.S. targets Canada’s cloud-computing move as trade irritant Economy CRA denied taxpayer with multiple health issues the disability tax credit Personal Finance Snowbirds moving back home drives high demand for cottage properties Real Estate Bank of Canada worried about impact of oil shock on inflation during rate deliberations Economy U.S. within 'weeks' of oil shortages if war in Iran continues: Eric Nuttall Oil & Gas Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. U.S. targets Canada’s cloud-computing move as trade irritant Economy CRA denied taxpayer with multiple health issues the disability tax credit Personal Finance Snowbirds moving back home drives high demand for cottage properties Real Estate Bank of Canada worried about impact of oil shock on inflation during rate deliberations Economy U.S. within 'weeks' of oil shortages if war in Iran continues: Eric Nuttall Oil & Gas