fuel

March 26 (Asia Today) — South Korea will raise its second round of fuel price caps starting at midnight Friday, pushing expected retail gasoline prices above 2,000 won per liter (about $1.50).

The government set the new ceiling for gasoline at 1,934 won ($1.45) per liter, up 210 won from the first round. Diesel will be capped at 1,923 won ($1.44) and kerosene at 1,530 won ($1.15).

Because refiners’ wholesale supply prices have already moved into the 1,900-won range, officials expect retail prices at gas stations to settle in the low 2,000-won range, or roughly $1.50 to $1.60 per liter.

The first round of price caps, introduced March 13, focused on shielding consumers from a surge in global oil prices. The second round reflects a shift in policy, allowing some price increases while trying to prevent excessive costs from being passed on to households as the crisis drags on.

The Ministry of Trade, Industry and Energy said the revised caps incorporate international oil price movements while factoring in inflation and household impact.

Yang Ki-wook, a senior official at the ministry, said the government did not apply global prices mechanically.

“We considered the broader impact on people’s livelihoods,” Yang said.

Based on the first round, when the nationwide average gasoline price reached about 1,810 won ($1.36), officials believe prices will now move into the low 2,000-won range.

The ministry said it may take two to three days for the new caps to be reflected at gas stations, as most retailers still hold inventory purchased under earlier pricing.

Stations that raise prices immediately could face scrutiny, Yang said, noting most hold five days to two weeks of supply.

The government estimates the price cap system lowers fuel costs by about 200 to 500 won per liter compared with a scenario without intervention.

Officials also rejected concerns that the policy conflicts with demand-control measures such as vehicle rotation systems. They said the second phase is intended to balance two goals: encouraging reduced consumption while preventing excessive price spikes.

Separately, the government extended fuel tax cuts through the end of May and increased the reduction rates. The gasoline tax cut was raised from 7% to 15%, and diesel from 10% to 25%.

Under the revised rates, fuel taxes now stand at 698 won ($0.52) per liter for gasoline and 436 won ($0.33) for diesel, down 65 won and 87 won, respectively.

Officials said the tax cuts were factored into the new price caps, resulting in effective reductions of about 200 won for gasoline and about 500 won for diesel and kerosene compared with market-based pricing.

The second round of price caps will remain in effect for about two weeks, through April 9.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260326010008302

As the United States-Israeli war with Iran sends tremors through the global economy, the poorest members of the Global South are the most exposed to the fallout.

In Asia, Africa and the Middle East, developing economies are bearing the brunt of surging energy costs prompted by the closure of the Strait of Hormuz and attacks on oil and gas facilities across the Gulf.

From Pakistan to Bangladesh and Sri Lanka, through to Jordan, Egypt and Ethiopia, policymakers are facing the double whammy of being both heavily dependent on imported energy and having limited financial firepower to absorb the shock of spiking prices.

In Pakistan, which imports about 80 percent of its energy from the Gulf and has lurched between economic crises for years, authorities have scrambled to roll out measures to conserve fuel.

Facing the depletion of the country’s petrol and diesel reserves within weeks, officials have closed schools, introduced a four-day working week for government offices, ordered half of the country’s public sector employees to work from home, and slashed fuel allowances for official business.

Pakistani Prime Minister Shehbaz Sharif said last week that he had decided against a proposed hike in petrol and diesel prices before the Eid Al-Fitr celebration, saying the government would “bear the burden” of rising costs.

Sharif’s announcement came after the government had earlier this month approved a 55 rupee ($0.20) rise in the price of a litre (0.26 gallons) of petrol or diesel.

While government subsidies have helped cushion the blow for the public, there are fears that petroleum prices will surge and bring economic activity to a halt if the war drags on, said S Akbar Zaidi, the executive director of the Institute of Business Administration in Karachi.

“The overall shock is quite severe, although it has not been fully passed on to consumers and to industry,” Zaidi said.

“I expect the next few weeks to make things far worse once the disruption and price factors pass through.”

In Bangladesh, which imports about 95 percent of its oil and is expected to run through its fuel reserves within days, petrol pumps in some districts have run dry despite the introduction of fuel rationing.

Sri Lanka, which imports about 60 percent of its energy needs and is still reeling from an economic meltdown that began in 2019, has declared every Wednesday a public holiday and introduced a mandatory fuel pass for vehicle owners to conserve petrol and diesel, stockpiles of which are projected to run dry within weeks.

In Egypt, one of the biggest energy importers and among the most indebted economies in the Middle East, the government has ordered malls, shops and cafes to close by 9pm on weekdays and 10pm during weekends, and cut back on public lighting.

Facing growing pressure on public finances due to the government’s heavy subsidisation of fuel prices, Egyptian officials on March 10 announced price hikes of between 15 and 22 percent for petrol, diesel and cooking gas.

While acknowledging the burden on the public, Egyptian President Abdel Fattah el-Sisi said the move was necessary to avoid “harsher and more dangerous outcomes”.

“For a majority of developing economies, especially those already grappling with debt and high import dependence, they are facing a potent mix of inflation, currency pressures and fiscal strains,” said Yeah Kim Leng, a professor of economics at the Jeffrey Cheah Institute on Southeast Asia at Sunway University in Kuala Lumpur, Malaysia.

“The hardest hit are net energy and food importers, especially those with fragile macroeconomic foundations and pre-existing vulnerabilities that typified countries with low per capita income and high poverty rates,” Yeah added.

Pakistan, Bangladesh, Sri Lanka, Jordan, Senegal, Egypt, Angola, Ethiopia and Zambia are among the most at risk, according to a recent analysis by the Washington-based Centre for Global Development, which looked at factors including dependence on fuel imports, public debt levels and foreign exchange reserve/import ratios.

Currency depreciation

The weakening of many developing countries’ currencies against the US dollar – the result of investors buying the greenback amid heightened geopolitical uncertainty – has compounded the situation by further driving up costs.

“Countries such as Indonesia and the Philippines have already seen their currencies at near record lows even before the start of the conflict, making imports, including oil, much more expensive,” said Azizul Amiludin, a non-resident senior fellow at the Malaysia Institute of Economic Research in Kuala Lumpur.

Much as the fallout of the war poses particular challenges for governments in developing countries, the effect on citizens is disproportionate, too.

In less advanced economies, citizens spend much more of their pay cheques on fuel and food, leaving them more exposed to rising living costs.

At the same time, governments in developing countries have less capacity to provide a safety net for those at risk of falling through the cracks.

“In vulnerable economies, governments often attempt to shield their populations from price hikes by subsidising fuel and food,” said Yeah, the Jeffrey Cheah Institute professor.

“However, with depleted fiscal buffers and shrinking revenues, this becomes unsustainable. The ensuing austerity, combined with hyperinflation, can trigger widespread social unrest and a full-blown fiscal crisis.”

With the US and Israel barely a month into their war and no clear timetable for its end in sight, many analysts expect things to get worse before they get better.

Khalid Waleed, a research fellow at the Sustainable Development Policy Institute in Islamabad, said rising transport costs would soon be felt at supermarket checkouts.

“Diesel is the backbone of Pakistan’s freight and agricultural economy,” Waleed said.

“Trucking costs have started climbing, and that will feed into everything from flour to fertiliser in the weeks ahead.”

Once Pakistan’s wheat harvest gets under way in April, food prices could spike well beyond their current levels, Waleed said.

“Combine harvesters, threshers, tractors for haulage from field to market, and the trucks that move grain from fields to flour mills and storage facilities all run on high-speed diesel,” he said.

“For a country where wheat flour is the single largest item in the food basket of the bottom two income quintiles, this is not a marginal concern,” Waleed added.

“If diesel prices stay elevated through April and May, Pakistan will harvest its wheat at the most expensive input cost in years, and that cost will transmit directly into food inflation at a time when households have almost no capacity left to absorb further price shocks.”

The simple answer is that the top management of Aston Martin and Audi have felt things were not working at various junctures and decided to act.

As far as Audi is concerned, it was clear some time ago that not enough investment was being put into Sauber early enough for the team to be in good shape when Audi officially entered F1 in 2026.

Andreas Seidl, the first chief executive officer, had been concerned about that for a while, and there was a bit of a power struggle between him and Oliver Hoffmann, the chairman of the boards of all Sauber companies, through 2023 and 2024.

It was expected one would win out. In the end, Audi decided to remove them both, and appoint Mattia Binotto and Jonathan Wheatley in a dual leadership role, Binotto as chief operating and technical officer and Wheatley as team principal.

Many in F1 raised their eyebrows at that – dual leaderships rarely work. Add in that at Audi there was another senior figure, in chief executive officer Adam Baker, and many felt the leadership of Audi looked unwieldy.

So it was not a massive surprise when that structure was streamlined, with Baker removed, and Binotto made head of the Audi F1 project under Audi CEO Gernot Dollner.

That was supposed to be that. Binotto was in overall charge, Wheatley ran the race team.

But when Wheatley decided that he wanted to come back to the UK, his talks with Aston Martin leaked, and he and Audi agreed to split with immediate effect.

As for Aston Martin, Lawrence Stroll is an ambitious man, he wants success, and he has invested a lot of money in it.

So it’s hardly a surprise that, when he feels things are not working, he takes action.

All the changes he has made have seemed logical on one level or another. There was clearly a problem with car design – after they made a big leap forward in 2023 under new technical director Dan Fallows, the team failed to develop the car effectively in season. They started 2024 less competitively and fell backwards again.

At the same time, Stroll was recruiting Newey. Why wouldn’t he, given he was available having left Red Bull? And with Newey on board, and the team stumbling under Fallows, it’s hardly a surprise Fallows would be considered surplus to requirements.

Same with the leadership. Mike Krack became team principal but the team was not moving in a convincing direction. Hence Stroll looked for change. Andy Cowell is highly regarded; his recruitment made sense.

Stroll would not have expected a clash between Cowell and Newey, but he got one, so another change was made.

Each change is understandable in isolation. But success in F1 is founded on stability not disruption and there has been little evidence of that at either team for the past two or three years.

Locals in northern India have a growing concern over essential resources like water, fuel and food, that have become costly due to the US-Israeli war on Iran. The conflict has brought implications on oil and gas prices, which has also affected bottled water and food costs.

ANOTHER major airline is cancelling hundreds of flight routes due to ongoing fears of rising fuel costs.

The Iran conflict has seen the closure of the Strait of Hormuz, one of the world’s most important shipping routes.

This has had a knock-on effect on the cost of fuel, which has reached new highs.

And a number of airlines have since had to reduce their flight schedule to avoid spiralling costs.

United Airlines is the latest to confirm that it would be cutting five per cent of flights in the second and third quarters of 2026.

With up to 5,000 flights a month – working out to around 4,000 domestic and 800 international routes – this means it affects around 250 flights a month.

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And with this set to last until the end of summer, it means thousands of passengers will be affected.

While the affected flights haven’t been confirmed, it will mainly affect the “less profitable” routes so including midweek flights, as well as overnight and Saturday routes.

United Airlines has the world’s largest airline fleet with more than 1,075 aircraft.

United Airlines‘ Chief Executive Scott Kirby said the cancellations were due to fears of oil rising to as much as $175 (£131) a barrel, and remaining above $100 (£75) until the end of next year.

This would mean the airline’s fuel costs would rise to $11billion (£8.2billion) – double the profit of their best year which was $5billion (£3.7billion).

They warned: “There’s no point in burning cash in the near term on flying that just can’t absorb these fuel costs.”

It’s not just the cost of fuel but how much is being used by airlines as well.

The closure of airspaces and Middle East airports, particularly Dubai which is one of the world’s busiest, has forced airlines to fly alternative – and longer – routes, which burn more fuel.

Other airlines have already confirmed they would be cancelling flights due to expected fuel costs.

Air New Zealand has cancelled 1,100 fights, although said it would mainly affect domestic routes.

This works out to around 44,000 passengers.

And Scandinavian airline SAS said it would be cancelling 1,000 flights next month, also affecting domestic routes primarily.

UK airlines are less affected for now, as most have ‘hedged’ oil prices – meaning paying a fixed price for a set amount of time.

Ryanair boss Michael O’Leary said the rise in jet fuel costs “won’t affect our costs and it won’t affect ​our low fares.”

Major airlines like British Airways and Virgin Atlantic have also cancelled a number of flights to the Middle East as places like the UAE remain on the not-save-to-travel list.

THERE could be trouble ahead for those who have booked holidays to far-flung destinations as airlines are warning of even more flight cancellations.

The rising price and shortage of jet fuel caused by the Iran crisis means airlines may be forced to axe longer journeys.

Following the closure of the Strait of Hormuz, the price of jet fuel has risen sharply from $90 (£67) per barrel to as much as $200 (£150) per barrel – with oil traders now also expecting a shortage of it in the coming weeks.

As a result, there’s a rising risk of airlines cancelling services especially to long-haul destinations.

This is because airlines heading to far-flung places may not have enough fuel for the return journey.

The Times reported that the problem could even go on until summer quoting an industry source that said it could “take up to six months to get back to normal” – which sees us through to August.

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Some airlines are already taking action to preserve fuel. Earlier this week, Air New Zealand said that it will be cutting back on flights until May 2026.

The airline will see roughly a five per cent reduction in its services which works out to around 1,100 flights.

Following suit, Scandinavian Airlines System (SAS) announced that it would be cancelling 1,000 flights.

Certain countries, like Vietnam have now warned that flights could be cancelled from April, affecting the Easter break.

Meanwhile, China and Thailand have halted exports of fuel to maintain their own supplies – which in turn will affect airlines operating in other countries.

Closer to home, Brits could be affected as some of its jet fuel is imported from the likes of Kuwait, Saudi Arabia and the UAE.

International Air Transport Association said that “Europe is among the most exposed, with 25–30 per cent of its jet fuel demand originating from the Persian Gulf.”

Meanwhile, Watson Farley & Williams, the energy, infrastructure and transport law firm, said: “If airports and airlines’ stocks of fuel are depleted for any length of time, airlines will cease to be able to fuel their aircraft and will have to reduce their operations.

“This may have far-reaching consequences.”

This implies that there could be a knock-on effect for airlines later on, too.

It added that “further flight cancellations can be expected, even by airlines operating from home bases where there is a reliable supply of fuel.”

Certain UK airlines are less affected for now because they have secured some of their fuel at a fixed price for a certain amount of time.

These include Ryanair, easyJet, British Airways and Virgin Atlantic.

Ryanair boss Michael O’Leary said the rise in jet fuel “won’t affect our costs and it won’t affect ​our low fares.”

For more on the Iran crisis, British Airways has cancelled all flights to Dubai until June.

Yet, these two beautiful holiday islands with direct UK flights are seeing ‘huge demand’ as Brits swerve from Dubai, says TUI boss.

March 18 (Asia Today) — South Korea’s four major oil refiners are ramping up production and delaying maintenance to stabilize domestic fuel supply amid rising global energy risks, industry officials said Tuesday.

The move comes as refining margins approach $30 per barrel, far above the industry break-even level of about $4 to $5, signaling what analysts describe as a “super cycle.”

Despite strong profitability, refiners said the decision reflects a priority on supply stability as concerns grow over potential fuel shortages linked to Middle East tensions and disruptions in the Strait of Hormuz.

GS Caltex has postponed major maintenance at its Yeosu refinery by about two months to May, opting to keep production running during the current high-margin period. Such maintenance typically lasts about 40 days and costs hundreds of billions of won.

Industry officials said the delay was driven not only by profitability but also by the need to ensure stable supply, including naphtha, a key feedstock for petrochemical production.

Naphtha prices have surged to about $1,009 per ton, roughly double the level seen a year earlier.

Refiners said maintaining high operating rates will also support petrochemical companies by ensuring a steady supply of raw materials.

SK Energy said it will continue operating at full capacity while complying with the government’s oil price cap policy. Authorities are monitoring refinery inventories and shipments in real time through a joint task force.

S-Oil and HD Hyundai Oilbank are also prioritizing domestic supply in line with government measures limiting exports of gasoline and diesel.

Industry sources said other refiners may follow GS Caltex in adjusting maintenance schedules, as shutting down facilities during a period of elevated margins would reduce efficiency.

Analysts said refiners are seeking to balance strong earnings with their role in preventing a domestic fuel crisis as geopolitical tensions persist.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260317010005107

A MAJOR airline in Europe has cancelled 1,000 flights next month due to soaring fuel costs caused by the Iran crisis.

Scandinavian Airlines System (SAS) is the second airline to do so, following Air New Zealand.

While the majority will be shorter domestic routes, some other longer routes could also be affected.

The main flights affected are across Norway, Sweden and Denmark.

In a statement, the airline said: “Given the ongoing situation in the Middle East, including the sharp and sudden increase in global fuel prices, we are taking measures to strengthen our resilience.”

“One such measure is a limited number of short-term flight cancellations.”

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SAS CEO ​Anko van ⁠der Werff told local media: “The price of jet fuel has doubled in ten days. ‌

“Even ⁠if we try to absorb cost hikes as far as we can this is a shock that strikes directly at the aviation industry.”

He confirmed hundreds of flights have already been cancelled this month, although urged that it was a fraction of their usual 800 flights a day.

He added: “We are cancelling a few hundred flights in March, but trying to protect our traffic as much as possible.”

More are expected to be affected after the Easter holidays.

The airline has also confirmed that they have increased flight prices, one of the first to do so in response to the conflict and alongside Qantas and Cathay Pacific.

SAS is the first major airline in Europe to axe flights because of of the cost of fuel going up.

This has been caused by the Iran conflict, with fears of it continuing due to the closure of the Strait of Hormuz, a major shipping route.

Earlier this month, Air New Zealand also confirmed they would be cancelling flights due to fuel costs.

The airline’s chief executive of Nikhil Ravishankar said the five per cent reduction in flights would last until May.

This works out to around 44,000 passengers, with the majority of services affected being short haul and domestic.

Most UK airlines are not currently affected due to a process called ‘hedging’ where they pay a set price for oil.

IAG – who owns British Airways – confirmed that 80 per cent of fuel was hedged for month.

Ryanair echoed this, saying that 84 per cent was hedged for the current quarter.

However, they could still be affected if the Iran conflict continues.

Before the conflict, prices were around $90 (£67) per barrel. This has now increased to as much as $200 (£149) per barrel.

We’ve explained what the Iran crisis means for your holiday.

And here are the European destinations booming in demand due to the ongoing conflict.

Just like regular consumers at the gas station, airlines refueling in Los Angeles are being forced to adjust to higher prices at the pump.

Jet fuel prices have shot up, and experts say airfares are following suit.

With a busy summer travel season approaching, airlines are starting to pass the costs on to passengers through higher fares and fees.

“Whenever there’s a surge in oil prices, the airlines end up passing that to the consumers immediately,” said Diego Bufquin, director of hospitality management and entrepreneurship at Tulane University. “It doesn’t take a long time.”

Airlines have been struggling around the world since the U.S. and Israel began bombing Iran late last month. Flights have to take longer paths around war zones, and higher fuel costs eat into their already razor-thin profit margins.

Jet fuel prices account for about a third of airlines’ operating costs, so they “cannot afford to wait to upcharge their customers,” Bufquin said.

United Airlines Chief Executive Scott Kirby told CNBC that the spike in fuel prices will have a “meaningful” impact on the airline’s financial results.

Some airlines outside the U.S. have already added fuel surcharges to their ticket fees. Air India announced a phased increase in fuel surcharges on domestic and international routes last week. Hong Kong’s flag carrier Cathay Pacific announced it would charge extra on all fares to cover fuel costs starting Wednesday.

Airlines topping up at LAX and other regional airports are already being hit. Jet fuel prices in Los Angeles have jumped more than 40% since the conflict in the Middle East started.

Just like the price of gas for cars, jet fuel often costs considerably more in California than in other states.

California is largely detached from the rest of the fuel distribution system. With limited pipeline connectivity, it relies more on sea delivery from other states and countries. California also has higher taxes on jet fuel than many other states.

National average gas prices reached $3.71 per gallon on Tuesday, according to AAA. In California, the average Tuesday was $5.52 per gallon.

Still, spring and summer demand is likely to remain strong even if prices rise, said Alan Fyall, an associate dean of the University of Central Florida Rosen College of Hospitality Management.

“Fares are going up, but the demand is still there domestically,” Fyall said. “The only thing that really dampens demand is economic recession.”

Indeed, consumers have been booking earlier than usual to lock in lower prices for their summer travel, airlines said. Delta and American Airlines had some of their strongest-ever single-day sales in March.

“When prices did spike, we saw a spike in demand,” Alaska Airlines Inc. Chief Executive Ben Minicucci said this week, according to Bloomberg. “I think people got this initial, ‘Wow, if this thing is going to go crazy, I better book my fare now before fares go up.’”

Airlines and other industries will face tougher conditions if fuel prices remain high for a prolonged period, he added.

Airfares were already on the rise, according to the Consumer Price Index, which found that the airline fares index rose 1.4% in February compared to last year.

The impact will vary by airline, said Fyall. Many airlines hedge their fuel to negotiate a fixed price, and stock up on fuel while it’s less expensive.

“The airlines that manage their fuel-buying process very well, that hedge very well, tend to be able to offset the price charges quite well,” Fyall said.

Jet fuel prices are even more sensitive to economic forces than auto fuel prices, experts said.

It’s not yet clear if Californians will have to pay significantly higher airfares than their neighbors, but some in-state flight routes could become temporarily unavailable, according to Bufquin. As airlines look to save money, they could cut certain shorter, less profitable routes.

“Budget airlines like Spirit and flights from smaller California hubs like Burbank, San José and Fresno are at risk of being canceled,” Bufquin said.

Tourism consultant David Evans has warned that the cost of flying is likely to rise sharply

A travel expert has advised folks to snap up flights now in anticipation of a predicted ‘surge’ in airfare costs. Tourism consultant David Evans revealed that aviation fuel prices have rocketed by 70 per cent in the wake of the US-Israeli strikes on Iran.

Speaking on BBC Radio 5 Live, he suggested that this could soon make flying considerably pricier. This situation is likely to be compounded by the financial strain many airlines are under due to the cancellation of numerous flights amid the unrest in the Middle East.

When asked by host Rachel Burden whether people should book now before flight prices soar, Mr Evans responded: “If you can get a flight that you feel is offering you a really good value-for-money price and it is via somewhere like Singapore (then yes).

“It’s also worth bearing in mind that, once all this blows over, which hopefully won’t be too far off, the Middle Eastern airlines will undoubtedly be introducing some attractive fares into the market to try and recoup the demand they’ve lost over the past few weeks.

“According to the data we’ve seen, the cost of jet fuel has risen by about 70 per cent. Fuel accounts for roughly a quarter of an airline’s operating cost, so the maths are pretty straightforward – if the fuel price is climbing that much, it won’t be long before air fares start to rise. If this carries on for many more weeks, travelling is likely to become more expensive.”

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Mr Evans’ remarks follow revelations that holiday-goers are eschewing Easter trips to traditionally favoured destinations such as Cyprus, Turkey, and Dubai, opting instead for western locations like Spain, Italy, and Portugal, as well as the Caribbean and Mauritius. According to Thomas Cook, bookings to Portugal saw a 42 per cent surge in the fortnight leading up to 13 March.

British Airways has axed some Middle East flight routes until June due to ‘airspace instability’, whilst the UAE and Dubai have been compelled to repeatedly shut down both airports and airspace following retaliatory Iranian strikes. Iraqi officials reported that Iranian strikes over the country on Monday (March 16) were the most intense they had seen throughout the entire war.

“I think the announcement from BA is probably good news in that it gives those people who would otherwise have been in complete limbo thinking, ‘crikey, is this situation going to improve or not over the next few months’ – now they know their flight is cancelled, they can either rebook on a different route or they can get a refund and use the money to either holiday domestically or to go to a different destination, so at least it provides certainty,” Mr Evans added.

“I guess we could say that the 2020s have been a bingo card of doom and this is the square for 2026, but it is also worth saying that the tourism industry and indeed tourists are incredibly resilient.

“Yes, clearly many people are being disrupted if they had either to or from the UK to or via the Middle East, but there are lots of other destinations that are still open for business and lots of other visitors able to get to the UK very easily.”

March 13 (Asia Today) — South Korean President Lee Jae-myung on Thursday urged citizens to report gas stations that violate the government’s newly introduced fuel price cap, saying public monitoring is necessary to prevent price gouging.

Lee posted a message on the social media platform X on the first day of the petroleum price cap system, asking citizens to report any gas stations charging excessive prices.

“Fuel prices are stabilizing, right? If you see price gouging, please report it,” Lee wrote.

The president also shared a map showing gasoline prices at gas stations in the Siheung area of Gyeonggi Province. The prices ranged from the 1,700 won to 1,900 won range per liter.

The government began enforcing the price cap at midnight Thursday.

Under the measure, refiners’ supply price for regular gasoline is capped at 1,724 won per liter, or about $1.29. The cap for automotive diesel is 1,713 won, about $1.28, and for kerosene 1,320 won, about $0.99.

Lee’s public posting of gas station prices was widely interpreted as a signal that the presidential office is closely monitoring fuel prices.

About 90 minutes before sharing the map, Lee posted another message warning companies against violating the policy.

“Starting today we are fully implementing the petroleum price cap system,” he wrote.

“To stabilize domestic fuel prices amid volatile international conditions, we have set clear upper limits on supply prices.”

Lee also called for citizen participation in monitoring the market.

“If you discover any gas station violating the price cap, please report it immediately,” he wrote. “Public vigilance is necessary to prevent businesses from taking advantage of the situation to earn excessive profits.”

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260313010003999

A SURGE in fuel prices due to the Middle East conflict has resulted in a major airline axing five per cent of its flights.

Air New Zealand announced that it will be cutting back on flights over the next two months.

Chief Executive of Air New Zealand Nikhil Ravishankar said the airline would see roughly a five per cent reduction in its services.

And that this would continue until the beginning of May 2026.

This reduction equates to around 1,100 flights which in turn will affect 44,000 passengers out of its 1.9million.

Talking to 1News Nikhil Ravishankar explained: “We’re focused on consolidating flights that are off-peak flying hours, for example, or where there is an alternative that we can re-accommodate customers.”

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He later added that the, “interventions we’re putting in place are not only reasonable, but are what all airlines around the world are doing”.

Air New Zealand said that most of the passengers affected would be moved onto other flights.

The airline has not provided a list of affected flights, but some officials in New Zealand have revealed domestic routes have been altered.

Mayor Nadine Taylor said that Air New Zealand intends to reduce its routes from Marlborough to Wellington, with Auckland and Christchurch flights also affected

The airline detailed that fewer long-haul flights would be cut.

MR Ravishankar said: “People want to get to Europe still, and ​over the US airspace we can get them into Europe, and that’s what we’re focused on doing.”

The announcement comes shortly after Air New Zealand increased its prices in response to the rising cost of fuel.

Domestic flights were going up by $10 (£4.37) one way, short haul by $20 (£8.74), and long haul $90 (£39.35).

Due to the ongoing US-Iran conflict, the cost of jet fuel has risen significantly.

Before the conflict, prices were around $90 (£67) per barrel and have since increased to as much as $200 (£149) per barrel.

As a result, it’s not just Air New Zealand that has increased its ticket prices – other airlines like Qantas and Scandinavia’s SAS have done the same.

However, some airlines like Ryanair, easyJet, British Airways and Virgin Atlantic, are less affected because they have secured some of their fuel at fixed prices for a set amount of time.

Ryanair boss Michael O’Leary said the rise in jet fuel “won’t affect our costs and it won’t affect ​our low fares”.

It’s not just flights that are affected. Places like the Balearic and Canary Islands are warning of a rise in the cost of food and drink.

And here’s why you should book a holiday now, as Iran crisis makes it more expensive.

YOUR holiday sangria or paella could be much more expensive on your next trip to the Spanish islands.

Officials have said that destinations like the Canaries and Balearics will experience a price hike when it comes to food and drink because of the ongoing conflict in the Middle East.

The Spanish islands are incredibly popular with Brits, especially during the summer holidays.

The Canary Islands welcomes up to six million British tourists each year and it’s where you’ll find the likes of Tenerife and Lanzarote.

Meanwhile, around three million tourists visit the Balearics – with over two million heading to Majorca alone.

Both locations are popular thanks to their high temperatures and direct flights from multiple locations across the UK.

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Now, industry chiefs have said the increase in cost of food and drink at these destinations will be worse than 2022 when prices shot up after the war in the Ukraine began.

Urgent meetings are already being held in the Balearic Islands and in the Canaries which are very dependent on imports due to their more isolated locations.

In July 2022, inflation climbed to 10.8 per cent in Spain.

President of the Association of Food and Beverage Distributors of the Balearic Islands, Mr Bartolomé Servera is warning of severe increases, which will depend on the duration of the crisis in Iran.

Mr Servera said the new impact will be much greater if the conflict is prolonged as the weight of the Middle East is much greater, especially through the Strait of Hormuz, through which 20 per cent of oil and gas pass.

Mr Servera says carriers have already begun to raise prices because the price of fuel has skyrocketed.

Diesel has risen by 32 cents per litre, around 22 per cent; while Gasoline 95 has become between 18 and 20 cents per litre more expensive, which represents 12 per cent.

In addition, it is not ruled out that the barrel of Brent will continue to rise: this Wednesday (March 11) it is around 90 dollars, but this past Monday (March 9) it was close to 120 dollars.

This is likely to then effect everything on the island from hotels and resorts.

The association president said “Milk, eggs, bread, fruit will rise.

“Everything needs fuel for its production or transport, so they will not escape the escalation of costs and producers will have to pass them on to consumers.”

The Canary Islands also fear soaring prices and will meet with transport leaders shortly.

President of the Cabildo de La Gomera, Casimiro Curbelo said official need to be monitoring the impact of the war on the islands and prepare contingency plans.

The Government of the Canary Islands says it is “very attentive” to the consequences of the war in the Middle East and plans to hold a meeting with the transport sector in the coming days in view of the increase in fuel prices.

Faced with this situation, the Government of Spain is working on an aid package, as it did at the beginning of the war in Ukraine, to alleviate the looming rise in prices.

For more on Majorca, here are the hidden gems on the island loved by locals.

And one writer who has visited 100 countries explains why he always goes back to these Spanish islands that Brits love and have the best food and beaches.

The Bahraini interior ministry released footage of a massive blaze at a fuel storage facility following an Iranian attack. Bahrain hosts the US Navy’s Fifth Fleet and has been consistently targeted amid the US-Israeli initiated war.

The war involving Iran, United States and Israel is increasingly affecting energy supplies far beyond the Middle East, with Bangladesh now scrambling to secure fuel imports after disruptions to regional shipping routes.

Bangladeshi officials say the country has begun receiving diesel shipments from suppliers including China and India, allowing authorities to secure enough fuel to meet roughly one month of national demand. Arrangements are also being made to secure supplies for an additional month.

The South Asian nation of about 175 million people depends heavily on imported energy, with roughly 95% of its fuel requirements sourced from abroad. The disruption of Middle Eastern oil flows following the war has therefore exposed Bangladesh to severe supply risks.

Fuel Rationing and Economic Disruptions

To manage the supply shortage, authorities have introduced emergency measures including fuel rationing for vehicles, restrictions on diesel sales and the temporary closure of universities.

Energy shortages are also affecting Bangladesh’s critical export industries. The country is the world’s second-largest clothing exporter after China, and many garment factories rely on diesel-powered generators during power outages.

Industry leaders say the situation has worsened since the conflict began in late February. Power cuts have doubled to as much as five hours per day, forcing factories to rely more heavily on backup generators.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association, said many companies are struggling to obtain sufficient diesel to keep their operations running during electricity outages.

The shortages threaten to disrupt production in one of Bangladesh’s most important economic sectors, which accounts for the majority of the country’s export earnings.

Emergency Diesel Shipments Arrive

To stabilise supplies, the state-run Bangladesh Petroleum Corporation (BPC) has arranged diesel shipments from international traders.

Energy officials say around 60,000 metric tons of diesel are currently being delivered by three trading companies, with another 90,000 metric tons expected to arrive later this month.

A cargo of approximately 27,000 metric tons from PetroChina has already arrived at Chittagong Port, while another shipment of roughly 28,000 metric tons from Vitol is waiting at the port’s outer anchorage.

Additional supplies are also arriving through a cross-border pipeline from India’s Numaligarh Refinery, which is currently providing about 5,000 metric tons of diesel. Officials said negotiations are underway to secure a further 30,000 metric tons from Indian Oil Corporation.

Bangladesh typically consumes about 380,000 metric tons of diesel each month. However, officials estimate that rationing measures have reduced current demand to around 270,000 metric tons per month.

Oil Imports Threatened by Hormuz Disruptions

While refined diesel cargoes have continued to arrive, Bangladesh faces greater risks in securing crude oil shipments for its domestic refineries.

The country imports about 1.4 million metric tons of crude oil annually under long-term supply agreements with Saudi Aramco and Abu Dhabi National Oil Company.

However, shipments from these suppliers must travel through the strategically vital Strait of Hormuz, which has been heavily disrupted by the war. Officials say at least one cargo of around 100,000 tons from Saudi Aramco has already been delayed in the Gulf due to the ongoing crisis.

The Strait of Hormuz is one of the world’s most important energy transit routes, and any prolonged disruption could have far-reaching consequences for countries heavily dependent on imported fuel.

Gas Shortages Add to Energy Crisis

Bangladesh’s energy difficulties extend beyond diesel shortages. Severe natural gas shortages have already forced the closure of four of the country’s five state-run fertiliser factories.

Authorities have redirected the available gas supply toward electricity generation in an effort to stabilise power production during the crisis.

The combination of diesel shortages, disrupted oil imports and limited gas supplies is placing growing pressure on Bangladesh’s energy system at a time when global fuel markets are already experiencing heightened volatility.

Analysis: Energy Dependence Exposes Economic Vulnerability

Bangladesh’s struggle to secure diesel supplies illustrates how the war involving Iran is affecting energy-importing economies far beyond the immediate conflict zone.

Countries that rely heavily on imported fuel are particularly vulnerable to disruptions in global energy shipping routes, especially those linked to the Strait of Hormuz. Even temporary interruptions can lead to fuel shortages, higher prices and broader economic disruption.

For Bangladesh, the situation highlights the structural risks created by its dependence on imported energy. Industries such as garments, which rely on stable electricity supplies and backup diesel generators, are especially exposed to supply shocks.

Although emergency shipments from China and India have temporarily stabilised supplies, the situation remains fragile. If the conflict in the Middle East continues to disrupt oil shipments or drive up prices, Bangladesh could face prolonged energy shortages with significant implications for its economy and export industries.

With information from Reuters.

The United States and Israel’s war on Iran has caused the largest energy supply shock in decades.

The Strait of Hormuz is in effect closed, and attacks are being carried out on energy facilities in the Middle East, rattling oil markets.

From Americans filling their tanks at the pump to European factories and Asian economies, the impact is already being felt.

US President Donald Trump says the rise in oil prices is a “very small price to pay” for “safety and peace”. But investors warn that if the conflict drags on, there’s danger of stagflation.

Israeli strikes on fuel depots and petroleum logistic sites in Tehran on Sunday saw apocalyptic images coming out of the Iranian capital, as the spilled oil ignited a river of fire, and thick black smoke blanketed the city of 10 million, leaving streets and vehicles covered with soot.

Israel and the United States claimed they were targeting Iranian military and government sites, but government officials and people say civilian structures such as schools, hospitals and major landmarks are increasingly coming under attack. At least 1,255 people have been killed in the strikes since February 28.

What Israeli and US military planners frame as a calculated degradation of state infrastructure is being described by local officials and environmental experts as an act of total warfare, and collective punishment.

Shina Ansari, head of Iran’s Department of Environment, described the systematic destruction of the oil depots as a blatant act of ecocide.

The attacks systematically targeted four major storage facilities and a distribution centre, including the Tehran refinery in the south and depots in Aghdasieh, Shahran, and Karaj. In the Shahran district, witnesses reported unrefined oil leaking directly into the streets as temperatures hovered around 13C (55F).

Ansari from Iran’s Department of Environment stated that the environment remains the silent victim of the war, noting that the incineration of vast fuel reserves has trapped the capital under a suffocating shroud of pollutants.

The medical and environmental fallout is immediate and severe. The Iranian Red Crescent Society warned that the smoke contains high concentrations of toxic hydrocarbons, sulphur, and nitrogen oxides. The organisation noted that any rainfall passing through these plumes becomes highly acidic, posing risks of skin burns and severe lung damage upon contact or inhalation.

Ali Jafarian, Iran’s deputy health minister, told Al Jazeera that this acid rain is already contaminating the soil and water supply. Jafarian added that the toxic air poses a life-threatening risk to the elderly, children, and those with pre-existing respiratory conditions, prompting authorities to advise residents to remain indoors.

The destruction has also forced the Iranian Ministry of Petroleum to slash daily fuel rations for civilians from 30 litres [8 gallons] to 20 litres [5 gallons]. At least four employees, including two tanker drivers, were killed in the depot strikes.

The strategic bombing myth

Major General Mamoun Abu Nowar, a retired Jordanian military analyst, told Al Jazeera that the primary objective of the strikes is to break the resilience of the Iranian people and paralyse the country’s logistics and economy.

“They are preparing the Iranian environment for an uprising against the regime,” Abu Nowar said, adding that the broader goal is to halt state operations and curb Tehran’s regional influence.

However, Abu Nowar raised urgent concerns about the specific munitions deployed, urging Iranian authorities to investigate the bomb fragments given the unusual density of the smoke and the resulting acid rain.

Some military strategists argue that striking an adversary’s vital infrastructure can paralyse the state from the inside out, bypassing the need to fight its military forces directly.

Modern warfare has increasingly relied on this strategic bombing via precision drones and missiles to destroy morale and incapacitate an adversary’s ability to wage war. For Israel, which is engaged in a genocidal war in Gaza and wider regional conflicts, targeting oil depots is viewed as a way to send a coercive message while avoiding a ground war.

However, Adel Shadid, a researcher in Israeli affairs, told Al Jazeera Arabic that the strategy is designed to make life hell for ordinary Iranians in hopes of sparking an uprising. Shadid noted a glaring contradiction in the rhetoric of Israeli Prime Minister Benjamin Netanyahu, who claims to support the Iranian people while overseeing the destruction of their basic means of survival.

Raphael S Cohen, director of the Strategy and Doctrine Program at the RAND Corporation, notes that such bombing campaigns consistently fail to achieve their primary goal of breaking a population’s will. Instead, Cohen argues, strategic bombing typically produces a rally-around-the-flag effect, unifying societies against a common foe rather than causing them to capitulate.

Historical echoes and retaliation

The reality of targeting oil infrastructure rarely aligns with sterile military theory, as history shows that such tactics reliably produce devastating, long-term environmental consequences.

During the 1991 Gulf War, the torching of Kuwaiti oil wells created a regional environmental catastrophe. Similarly, during the battle against ISIL (ISIS) in Iraq, the burning of the Qayyarah oil fields created a “Daesh Winter” that blocked out the sun for months.

The fires released vast quantities of toxic residues, including sulphur dioxide and polycyclic aromatic hydrocarbons, causing severe respiratory illnesses, soil acidification, and long-term carcinogenic risks for the local population.

Meanwhile, Mokhtar Haddad, director of the Al-Wefaq newspaper, told Al Jazeera Arabic that the targeting of energy hubs could trigger a global energy war.

According to Al Jazeera’s Sohaib al-Assa, reporting from Tehran, the Islamic Revolutionary Guard Corps (IRGC) has already retaliated by striking the Haifa oil refinery and targeting a US base in Kuwait, signalling that the conflict is no longer confined to military targets.

On Monday, Bahrain’s state-run oil company Bapco declared force majeure after waves of Iranian strikes targeted its energy installations. Iran has also been accused of also targeting energy facilities in other Gulf Cooperation Council (GCC) countries.

President Lee Jae Myung on Monday called for authorities to swiftly introduce a cap on local fuel prices, and preemptive responses to cope with surging gas prices and volatility in foreign exchange markets as the U.S.-led war with Iran has intensified in the Middle East.

Lee made the remarks during an interministerial meeting to assess the latest developments following U.S.-Israeli strikes on Iran and Tehran’s retaliatory attacks across the Middle East, which have prompted the price of Brent oil to surge through US$100 per barrel.

“As the crisis in the Middle East deepens, uncertainty in the domestic and global economic environment is expanding significantly, posing a considerable burden on the Korean economy relying heavily on global trade and energy imports from the Middle East,” Lee said.

Lee also called for preemptive responses Monday with worst-case scenarios in mind to address the economic fallout from heightened tensions in the Middle East, urging financial stability measures and the exploration of alternative energy routes.

“As it is difficult to predict how the situation will unfold, the government must prepare preemptive response measures with a sense of urgency, keeping even the worst-case scenario in mind,” he added.

Lee urged the government and the Bank of Korea to prepare additional preemptive measures to respond to rising volatility in financial and foreign exchange markets, instructing authorities to expand the 100 trillion-won ($66.8 billion) market stabilization program if necessary.

“We should identify hidden risks and meticulously prepare response measures.”

Lee also called for measures to address uncertainty surrounding energy supplies amid concerns over disruptions to shipping through the Strait of Hormuz, a major global shipping route.

“We will coordinate with strategic partner countries to promptly explore alternative routes that do not have to pass through the Strait of Hormuz,” he said.

In addition, he urged the government to crack down on collusion between refiners and gas stations, price fixing, and hoarding, calling for strict punishment of violators and the implementation of a price cap system on gasoline and diesel.

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