Gyeonggi Special Judicial Police Arrest 25 for Distribution of Under-Quantity and Fake Petroleum

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has cracked down on gas station operators who sold fake petroleum and cheated on quantities.

The head of the Gyeonggi Province Special Judicial Police Unit announced on the 11th that from January to April this year, in cooperation with the Korea Petroleum Management Service, they conducted investigations into illegal distribution of petroleum products, arresting 25 individuals involved in illegal manufacturing of petroleum products, tax evasion, and under-quantity sales. Among them, 14 were referred to the prosecution and 11 were criminally charged and are under investigation.

The total volume of petroleum products illegally distributed through fake petroleum and undocumented transactions without tax records amounted to 4.22 million liters, equivalent to 21,147 200-liter drums. This is valued at approximately 6.7 billion KRW, and the tax evasion through undocumented transactions reached 1.07 billion KRW.

Among the major illegal cases, gas station operators A and B mixed low-priced heating kerosene and diesel in home lorry (petroleum transport vehicle) storage tanks and supplied it as fuel for dump trucks and heavy equipment at construction sites in the metropolitan area including Gwangju, Gyeonggi Province, before being caught on site.

Operators C and D mixed ship-duty-free fuel oil and heating kerosene, which contain sulfur levels up to 10 times higher than normal diesel, in underground storage tanks and sold 24,330 liters to unspecified consumers before being apprehended. The Special Judicial Police confiscated and destroyed all of it.

Distributor E and delivery driver F installed a manipulation device on the fuel gauge of home lorry refueling vehicles to deliver about 15% less fuel than the indicated quantity, deceiving construction sites and various consumers by selling a total of 90,000 liters, earning an illicit profit of 120 million KRW.

Additionally, eight individuals including operators G and H illegally purchased 4.1 million liters of diesel with unclear origins from unregistered businesses through undocumented cash transactions, selling it and earning an illicit profit of 6.54 billion KRW while evading taxes amounting to 1.07 billion KRW, which led to their capture.

In particular, G fabricated petroleum supply situation reports to the Korea Petroleum Management Service to conceal undocumented transactions by pretending to have purchased normal diesel, and H attempted to evade tax collection and administrative sanctions on the day of the crackdown by applying for a change of representative (succession) with the competent authority, thereby avoiding legal consequences.

Seven individuals including operators I, J, and K operated gas stations and illegally transported and sold 25,237 liters of petroleum products such as kerosene, diesel, and gasoline using home lorry vehicles to construction sites in Pyeongtaek, Osan, Yeoju, and Pocheon, as well as to freight trucks, earning an illicit profit of 37 million KRW.

I was caught on site selling heating kerosene as fuel for construction machinery using a plastic (FRP) storage tank, an unauthorized hazardous material storage facility, and a cargo vehicle equipped with a simple refueling facility.

Under the current 'Petroleum and Petroleum Substitute Fuel Business Act,' manufacturing, storing, or selling fake petroleum is punishable by up to five years imprisonment or a fine of up to 200 million KRW. Under-quantity sales, undocumented transactions, and selling kerosene as fuel are punishable by up to two years imprisonment or a fine of up to 50 million KRW. Violating businesses are also subject to administrative sanctions such as business suspension, fines, or closure of business premises by the competent authorities.

Kim Young-soo, head of the Gyeonggi Province Special Judicial Police Unit, emphasized, "As the trend of high oil prices continues, illegal petroleum distribution offenders are becoming rampant. We will focus our investigative capabilities on continuous on-site crackdowns in cooperation with the Korea Petroleum Management Service to eradicate illegal distribution of petroleum products."

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