Energy policy needs coherence

The government has introduced a five-day rotation system for vehicle use at public institutions starting at midnight on Wednesday, marking its first implementation since 2011. Authorities have also urged voluntary participation from the private sector and are considering mandatory measures if conditions worsen. Given the recent instability in the energy supply, the decision can be understood as a necessary step.

The issue, however, lies not in the validity of individual policies but in the overall coherence and effectiveness of the response. A key example is the simultaneous use of a fuel price cap and the vehicle rotation system. Artificially lowering prices tends to sustain or increase consumption, while the rotation system aims to reduce demand by limiting vehicle use. Without careful coordination, such measures risk working at cross purposes.

Questions also arise over the blanket exemption of electric and hydrogen vehicles from the rotation system. On Tuesday, the Ministry of Climate, Energy and Environment asked drivers to charge electric vehicles during daytime hours when renewable energy generation is higher, underscoring the significant electricity demand for charging. At a time when both public institutions and the private sector are expected to conserve energy, such exemptions may raise concerns about fairness.

Ongoing investigations into alleged price collusion among oil refiners must also be handled with care. While any confirmed wrongdoing should be addressed, enforcement actions should not disrupt the urgent task of securing crude oil imports. On Monday, prosecutors carried out search and seizure operations targeting the country’s four major refiners as part of a probe into suspected collusion. The move followed instructions from Justice Minister Jung Sung-ho to respond firmly. President Lee Jae Myung has also described oil price collusion as a serious crime. Even so, refiners play a critical role in maintaining energy supply, and that function must not be undermined.

The broader impact on industry and daily life cannot be overlooked. Shortages of naphtha, a key petrochemical feedstock derived from oil, are already raising concerns about a “plastic supply crisis.” The government is reportedly reviewing restrictions on naphtha exports. If disruptions in the Strait of Hormuz persist, the potential damage to the national economy could be severe.

In this environment, the government must prepare contingency measures for worst-case scenarios. Clear communication is equally important. To navigate the crisis effectively, authorities need to explain the situation in detail and persuade the public to participate in energy-saving efforts. Without public understanding and cooperation, policy measures are unlikely to achieve their intended results.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.