The South Korean government is actively considering implementing an odd-even license plate driving restriction system for public sector vehicles. The country's petroleum resource security crisis alert level is also reportedly on the verge of being elevated from the current "caution" stage to "alert." The government has also decided to launch a "strategic reserve swap" program that immediately provides companies with oil from strategic reserves when they secure alternative crude supplies to replace Middle Eastern oil.
According to relevant government ministries on the 31st, the government is expected to tighten the current five-day rotation driving restriction for public sector vehicles to an odd-even (every other day) system as early as next week. The move comes as the Middle East-driven crude oil supply disruption shows signs of becoming prolonged, prompting the government to curb consumption of transportation petroleum products such as gasoline and diesel.
A government official said, "The specific timing and details have not been decided," but added, "Unlike the five-day rotation system, the odd-even system significantly affects commuting, so we will allow some preparation time."
The government is also on high alert over crude oil and naphtha supply chain management. Following LG Chem's coordination with the government to secure 27,000 tons of Russian naphtha already loaded on ships at sea, Yeo Han-koo, chief trade negotiator at the Ministry of Trade, Industry and Energy, revealed that he had contacted Indian counterparts to request increased naphtha exports to South Korea.
The government will also implement a program for two months that provides companies with oil from strategic reserves first, minimizing the time needed to bring in crude after they secure supplies overseas. The Ministry of Trade, Industry and Energy expects more than 20 million barrels of crude oil to be additionally supplied through this program by the end of May.
