'Soaring Oil Prices Fuel Fake Oil Surge'... Gyeonggi Special Judicial Police Arrest 6 for Illegal Oil Distribution

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has uncovered a large number of gas station operators illegally handling petroleum by mixing cheap heating kerosene and diesel to produce fake petroleum, or selling petroleum at higher prices than nearby gas stations without displaying the mandatory price information.

The Gyeonggi Province Special Judicial Police Unit for Fairness announced on the 11th that, in cooperation with the Korea Petroleum Management Service, it conducted an investigation into illegal distribution of petroleum products from May to June this year. As a result, six individuals involved in illegal activities such as manufacturing fake petroleum, tax evasion, and irregular kerosene sales were apprehended. One was referred to the prosecution, and five are under criminal investigation.

The total volume of petroleum products illegally distributed by these individuals through fake petroleum and undocumented transactions amounted to 2.54 million liters, equivalent to 13,000 200-liter drums. This is valued at 5.3 billion KRW, with tax evasion amounting to 430 million KRW due to undocumented transactions.

Among the major cases uncovered, gas station operator A sold diesel without displaying the mandatory sales price as required by the "Petroleum and Petroleum Substitute Fuel Business Act," charging up to 300 KRW more per liter than nearby gas stations. Additionally, A illegally transported and sold 881,000 liters of diesel to construction sites within the province using tanker trucks. It was found that A gained an unfair profit of 1.85 billion KRW through these two illegal acts.

Gas station operator B and three others illegally purchased 1.43 million liters of diesel from unregistered dealers through undocumented cash transactions and sold it, earning an unfair profit of 3.01 billion KRW and evading taxes of 430 million KRW. In particular, B is also accused of submitting false petroleum supply status reports to the Petroleum Management Service, pretending to have conducted legitimate transactions with registered businesses to evade detection.

Petroleum seller C manufactured 220,000 liters of fake petroleum by mixing 70% cheap heating kerosene with 30% diesel in the storage tanks of gas station tanker trucks. C then illegally sold this mixture by moving around construction sites in Seoul and Gyeonggi Province, supplying dump trucks, excavators, and pump cars, earning an unfair profit of 460 million KRW before being caught on site.

Fake petroleum causes air pollution and emits harmful substances to the human body, and it can also cause vehicle malfunctions, posing significant risks. Especially when used to fuel heavy equipment such as dump trucks and excavators at large construction sites, it can lead to major safety accidents.

Additionally, gas station operator D was caught evading regulations by irregularly selling kerosene, which is prohibited for vehicle fueling. D supplied kerosene to a fiberglass-reinforced plastic (FRP) storage tank owned by a dump truck driver, who then refueled his dump truck from this tank. D sold a total of 5,000 liters through this irregular method, gaining an unfair profit of 5 million KRW.

Under the current "Petroleum and Petroleum Substitute Fuel Business Act," those who manufacture, store, or sell fake petroleum face imprisonment of up to five years or fines up to 200 million KRW. Those who sell under-measured quantities, conduct undocumented transactions, or sell kerosene as fuel face imprisonment of up to two years or fines up to 50 million KRW. Violating businesses are also subject to administrative sanctions such as business suspension, fines, or closure by the competent authorities.

Kim Young-soo, head of the Gyeonggi Province Special Judicial Police Unit for Fairness, emphasized, "With the ongoing high oil price trend, there is a growing concern that illegal petroleum distribution offenders will become more active. We will continue on-site crackdowns in cooperation with the Korea Petroleum Management Service and the petroleum distribution industry to focus our investigative capabilities on eradicating illegal distribution of petroleum products."

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