[2021 National Audit] Song Gap-seok "1,894 Gas Stations Sold Fake or Substandard Oil in 5 Years... Need to Expand Quality Certification System"

Positive Effects of the Petroleum Quality Certification Program
Fundamental and Broad Preventive Measures Needed

[Asia Economy Reporter Joo Sang-don] It has been revealed that 1,894 gas stations were caught selling counterfeit or substandard petroleum products over the past five years.

According to data submitted by the Korea Petroleum Management Service to Song Gap-seok, a member of the National Assembly’s Industry, Trade, Energy, Small and Medium Enterprises Committee from the Democratic Party of Korea, from 2016 to June 2021, a total of 1,894 gas stations were caught selling counterfeit or substandard petroleum. Out of 11,440 gas stations nationwide (as of September 2021), about 3%, or 344 gas stations, were caught annually.

The region with the highest number of caught gas stations was Gyeonggi-do, with a total of 498 stations, accounting for 26.3%. This was followed by Chungnam with 187 stations (9.9%), Gyeongbuk with 174 stations (9.2%), Gyeongnam with 155 stations (8.2%), and Jeonnam with 150 stations (7.9%). A total of 49 gas stations violated the regulations more than twice, and 4 gas stations were caught violating three or more times.

To improve this situation, the Korea Petroleum Management Service operates the "Petroleum Quality Certification Program," in which the government certifies and manages the quality of petroleum sold at gas stations. Assemblyman Song stated, "Only 2 cases of petroleum business law violations were reported from quality-certified gas stations from 2020 to August 2021, whereas 443 violations were detected from non-certified gas stations during the same period, indicating the program’s positive effect." However, he pointed out, "The certification program only allows about 400 gas stations to join annually on a first-come, first-served basis, and the related budget has decreased from 2.2 billion KRW in 2017 to 1.8 billion KRW in 2020, leading to a significant decline in participation. Therefore, it is insufficient as a countermeasure against the sale of counterfeit and substandard petroleum."

Assemblyman Song added, "The distribution and sale of counterfeit and substandard petroleum is an illegal act that threatens not only economic interests but also safety. Fundamental and broad preventive measures, including the expansion of the quality certification program, must be established."

This content was produced with the assistance of AI translation services.