International crude prices have reached nearly $50 a barrel, gaining about 100 percent in about four months. Though the prices may shift downward again amid the supply glut, few will deny that oil prices hit bottom in the first quarter.
The simultaneous rebound in gasoline and diesel prices is not good news for ordinary car drivers in Korea.
Amid concerns over higher fuel costs, the Environment Ministry is also pushing for hikes in the retail diesel price as part of its efforts to improve the environment. This might mean that diesel vehicle owners could face a double burden.
The ministry is citing diesel-fueled vehicles’ emissions of toxic nitrogen oxide, which contributes to fine dust in the air. It regards diesel vehicles as a key source of fine dust, which is a serious threat to citizens’ health.
While relevant ministries are moving to fine-tune the Environment Ministry’s plan, there is a need for the government to trace the issue in terms of policy efficacy.
An example is the drastic hike in cigarette prices led by the Health and Welfare Ministry. Though cigarette prices were raised by 80 percent on Jan. 1, 2015 -- with the ministry clarifying that it was aimed at public health -- the smoking rate among citizens has not fallen sharply.
It is paradoxical that the government has allowed the entry of foreign cigarette brands into PX stores within military units, citing product diversity. According to the logic of the Health Ministry, sale of cigarettes in the military should be gradually banned for soldiers’ health.
It is unlikely that many citizens will replace their diesel vehicles with gasoline-fueled cars or choose to use public transportation even if diesel prices rise.
Environmental policies should be proactive and a substitute for diesel vehicles could be electric vehicles. Instead of revising the Environment Ministry’s plan, relevant ministries need to publicize a futuristic vision to vitalize electric vehicle technologies and its fast commercialization in close coordination with local automakers.
