S Korea sets fuel-saving measures

South Korea has to import all of its crude oil supplies. South Korea has announced the first in a series of measures intended to tackle the cost of rising fuel prices. Thousands of public sector vehicles will only be allowed on the road on alternate days and government buildings air conditioning will be restricted. Prime Minister Han Seung-soo said that if oil prices continued to rise, more extreme measures would be taken. Correspondents say the move is largely symbolic as it covers only a limited number of vehicles and buildings. South Korea has to import all its crude oil supplies and expects to spend $111.2bn (£56bn) on oil this year, up from $60.3bn (£30.4bn) last year. Mr Han told a press conference: "Even oil-producing countries are tightening their belts to save energy in the era of the ultra high oil prices." "To take concrete measures to save energy is not a matter of choice but a matter of survival." 'Mandatory' The restrictions, which will be introduced on 15 July, will apply to 15,000 public-sector vehicles and more than 800 public offices and institutions. Office thermostats are to be adjusted by 1C in both summer and winter. There are also plans to replace half the fleet of public sector vehicles by compact or hybrid versions by 2012, reports state media. Finance Minister Kang Man-soo said that if global oil prices reached $170 (£86) a barrel, mandatory savings in the private sector might be introduced as well. He also suggested that the government could revise its economic forecast, if oil prices rise above $150 (£76) a barrel. Analysts say that price might not be far away, after the price of crude oil hit an all-time high of $145.85 (£73) last Thursday.

http://news.bbc.co.uk/2/hi/asia-pacific/7491882.stm