Sunday, July 06, 2008

Oil: South Korea tackles oil consumption

South Korea said on Sunday it would restrict driving of cars owned by public organizations from this week as part of contingency measures aimed at reducing energy consumption in the face of skyrocketing oil prices, Reuters reported.

The move marks the first direct restriction on energy consumption introduced by the world's fifth-largest oil consumer in response to soaring costs of oil and fuels.

But the total amount of energy saving will likely be small because the measures apply only to the public sector, which accounts for less than 4 percent of South Korea's total energy consumption.
The government said the measures would help reduce energy consumption by the public sector by 6.6 percent.

The plans follow a 10.5 trillion won (USD 10.01 billion) package introduced last month to ease the financial burden of high oil prices on low-income individuals and self-owned businesses.
The government plans to keep urging the private sector to further reduce energy consumption, but will consider imposing restrictive measures only when the supply of crude oil is disrupted, it said.

The government said last month it would come up with extra contingency plans, including a cut in oil taxes, if Dubai oil tops USD 170 a barrel.

The price of Dubai crude, which South Korea uses as benchmark, stood at USD 140.75 a barrel as of Saturday, according to Korea National Oil Corp (KNOC).

Republished permission of FOCUS Information Agency
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