Middle East Conflict Sparks Oil Price Surge, Deepening Farmers' and Fishermen's Woes

As the unstable situation in the Middle East causes international oil prices to surge, the burden of fuel costs is growing in the farming and fishing sectors. The rise in global oil prices stemming from the Middle East crisis has increased the price of tax-exempt fuel, which is essential for operating farm machinery and fishing boats.

Tax-exempt fuel, which cost around 900 won per liter before the Russia-Ukraine war, has now risen to between 1,104 and 1,487 won. The price for a 200-liter drum of tax-exempt fuel has also jumped from 160,000 won to over 240,000 won in the past month. In addition to fuel costs, fertilizer prices have increased by nearly 40%, and plastic sheeting prices have also risen due to unstable naphtha supply and demand.

In the fishing industry, alongside declining catches, the price of fishing gear such as nets and ropes has risen by over 20%, leading to deteriorating profitability and an increase in fishermen abandoning their operations. Concerns are mounting that the rise in production costs could lead to higher prices for agricultural and fishery products, ultimately impacting consumer inflation.

Some local governments are independently reviewing additional support measures, separate from the government's supplementary budget, to ease the burden on farmers and fishermen.