South Korean officials said today that the government plans to allow domestic airlines and freight companies to increase their fuel surcharges due to the rapidly increasing international oil prices.

The government has received demands from domestic airlines to revise the current surcharge system to take into account high oil prices, officials of the Transportation Ministry told South Korea's Yonhap News Agency.

The ministry plans to expand the current seven-phase surcharge system to a 10-phase one within the year, the officials said.

The current system allows a maximum surcharge of US$52 for long-distance passenger flights. The new system is likely to allow additional fuel surcharges of 10 to 15 percent, Yonhap said.

According to Yonhap, the South Korean government plans to finalize the measure after consulting with trade and freight officials to minimize possible side effects from expanding the surcharge system.

International oil prices have been increasing at a rapid pace recently, with West Texas Intermediate for November delivery hitting a record high of US$89.47 per barrel last Thursday in New York.