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SEOUL - SOUTH Korea said on Sunday it would restrict driving of cars owned by public organisations from this week as part of contingency measures aimed at reducing energy consumption in the face of skyrocketing oil prices.
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 per cent of South Korea's total energy consumption.
The government said the measures would help reduce energy consumption by the public sector by 6.6 per cent.
The plans follow a 10.5 trillion won (S$13.6 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 US$170 a barrel.
The price of Dubai crude, which South Korea uses as benchmark, stood at US$140.75 a barrel as of Saturday, according to Korea National Oil Corp (KNOC). -- REUTERS
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