South Korea considers nationwide driving restrictions as oil prices surge

Monday 30 March 2026 - 09:15

South Korea is evaluating the possibility of expanding driving restrictions to the general public amid rising global oil prices, officials said on Monday. The measure would aim to manage energy demand as supply strains intensify due to the ongoing U.S.-Israeli conflict with Iran.

Finance Minister Koo Yun-cheol indicated that if crude prices climb to around $120–$130 per barrel, higher than the current $100–$110 range, the government could extend curbs on passenger car use beyond public institutions. Such a move would be the first nationwide driving restriction since the 1991 Gulf War, when authorities implemented a 10-day vehicle rotation system to conserve energy.

Koo also mentioned that the crisis alert could be raised to the "warning" level, the third-highest in South Korea’s four-stage resource security alert system, if the situation in the Middle East deteriorates further. The government is additionally considering fuel tax cuts to reduce the impact on households.

The proposal highlights Seoul’s proactive approach to energy management, balancing economic activity with the need to conserve resources amid volatile global markets and geopolitical uncertainty.