The Democratic Party considers simultaneous fuel price cuts at company-operated and self-operated gas stations... Demands refiners to "immediately reflect the reductions"

People Power Party Price and Livelihood Stability Special Committee Holds On-Site Meeting at Gas Station
Checks Whether Fuel Tax Reduction Was Immediately Reflected in Actual Prices

Ryu Seong-geol, Chairman of the People Power Party's Special Committee on Price and Livelihood Stabilization, is speaking at the 1st meeting of the Special Committee on Price and Livelihood Stabilization held at the National Assembly in Yeouido, Seoul on the 16th. (Photo by Yonhap News)

[Asia Economy Reporter Geum Bo-ryeong] The People Power Party and the government have decided to consider a plan to simultaneously lower fuel prices at direct-operated, budget, and self-operated gas stations. If the actual fuel price reduction is less than the government's fuel tax cut, they are also considering reimbursing consumers for the shortfall.

On the 1st, Ryu Seong-geol, chairman of the People Power Party's Special Committee on Price and Livelihood Stability, met with reporters after the 5th meeting at SK Energy Park Mi Gas Station in Geumcheon-gu, Seoul, stating, "We checked whether the fuel tax cut was immediately reflected in prices on the ground and discussed ways to enhance the public's perception of the government's price measures."

He added, "Various ideas were proposed to ensure the specific fuel tax cut is reflected in fuel prices. The first is to lower fuel prices simultaneously at direct-operated, budget, and self-operated gas stations regardless of type, and then raise prices on the day the period ends." He continued, "In the case of self-operated gas stations, there is a considerable amount of inventory purchased under the previous fuel tax rate, so the Ministry of Trade, Industry and Energy is expected to hold additional discussions with related agencies and associations on how to handle this."

Ryu also said, "The second idea discussed was to reimburse consumers directly for the fuel tax cut later, considering that it is difficult to feel the impact of the tax cut immediately."

However, it is uncertain whether these ideas will be adopted as government policy. Ryu explained, "These were discussed at the idea level after reviewing various matters. Some called it 'innovative' and 'fresh,' while others compared pros and cons, treating it as just an idea."

The visit to the gas station was arranged to understand market trends on the first day of implementing the government's measure to increase the fuel tax cut from the existing 30% to up to 37%. Attendees included People Power Party officials, Park Il-jun, 2nd Vice Minister of the Ministry of Trade, Industry and Energy, Koo Chang-yong, Vice President of SK Energy, Seo Jeong-gyu, Vice President of S-Oil, Kim Chang-soo, Executive Director of GS Caltex, Park Ki-cheol, Executive Director of Hyundai Oilbank, Jung Dong-chang, Vice Chairman of the Korea Petroleum Association, and Yoo Ki-jun, Chairman of the Korea Gas Station Association.

At the meeting, the People Power Party pointed out that the government's fuel tax cut was not properly reflected in fuel prices and urged the refining and distribution industries to come up with countermeasures. Ryu emphasized, "We demanded that refiners immediately reflect the fuel tax cut."

Park Soo-young, a member of the Special Committee on Price and Livelihood, posted on her Facebook after the meeting, "Fuel prices at budget and direct-operated gas stations were immediately lowered, which we confirmed. However, at self-operated gas stations, which account for 82% of all stations, discounts are expected to take one to two weeks to appear because existing inventory purchased at pre-tax cut prices must be sold off first."

Meanwhile, the Special Committee on Price and Livelihood plans to discuss measures related to jeonse and monthly rent with the Ministry of Land, Infrastructure and Transport and other relevant departments and agencies at the next meeting.

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