S Korea set to unveil steps to cut oil consumption

South Korea's government plans to unveil a set of measures next month to help reduce oil consumption, which can fuel inflationary pressure, a senior economic policymaker said. South Korea's Finance Minister Bahk Jae-wan told an economic policymakers meeting that comprehensive measures are needed because consumption of gasoline moved up 5.4% in the first quarter despite the spike in crude oil prices, according to South Korea's (Yonhap) News Agency. The country's consumer prices fell to a 20-month low of 2.6% growth in March, but Seoul said it must be on guard since international crude and key commodity prices remain high. "A plan that utilizes incentive as well as restrictions should be drawn up to cut back on oil consumption," the official said. He added that measures such as expanding the number of bargain gas stations, permitting the mixing of additives to fuel, and lowering of the tariff quota on gasoline will be explored to reduce consumption. Bahk said that action will be taken to stimulate competition from refineries that supply oil products to the market. The official, in addition, said actions will be taken to revamp the local distribution system so consumers can actually experience the benefits of free trade agreements with the European Union and the United States.