[2022 National Audit] 1,866 Cases of Illegal Petroleum Distribution Including Fake Oil in the Last 5 Years

Source=Korea Petroleum Management Service

[Asia Economy Reporter Donghoon Jeong] In the past five years, a total of 1,866 cases of gas stations caught selling fake petroleum products, such as counterfeit diesel mixed with kerosene or products that failed quality standards, have been reported.

According to the "Recent 5-Year Illegal Petroleum Distribution Detection Records" submitted by the Korea Petroleum Quality and Distribution Authority to National Assembly member Dongju Lee of the Industry, Trade, Energy, Small and Medium Enterprises Committee on the 20th, hundreds of cases of fake petroleum sales, quality non-compliance, kerosene sales, and under-quantity sales have been detected annually.

The number of illegal petroleum distribution cases gradually decreased from 665 in 2018 to 396 in 2019 and 249 in 2020, but rebounded to 320 cases in 2021. As of August this year, 236 cases have been detected, showing a similar level to the previous year.

By type, quality non-compliance was the most frequent with 1,046 cases over five years. Quality non-compliant products refer to those that fall below the quality standards stipulated by the Petroleum Business Act due to poor management or storage negligence, or intentional product mixing.

By refinery, following SK Energy, Hyundai Oilbank recorded 328 cases, GS Caltex 300 cases, and S-OIL 267 cases. Discount gas stations and unbranded gas stations also accounted for 254 cases over the past five years.

Gas stations that sold petroleum below the standard quantity (under 150 ml shortfall per 20 liters of fuel) totaled 234 during the same period. Cases of counterfeit petroleum, such as fake kerosene mixed with diesel, were 368. Sales of kerosene, which is a heating fuel, as automotive fuel amounted to 218 cases.

The Korea Petroleum Quality and Distribution Authority notifies the relevant city, county, or district office upon detecting illegal distribution. The local office then imposes administrative sanctions on gas stations as follows: fake petroleum (business suspension for 3 months), quality non-compliance (1st offense warning, 2nd offense business suspension for 3 months), under-quantity sales (business suspension for 2 months), and kerosene sales (business suspension for 3 months).

Assemblyman Dongju Lee stated, "The sale of fake petroleum is used as a means of tax evasion, and prolonged use of fake petroleum can cause mechanical part wear, safety accidents, and increased harmful emissions. We need to strengthen crackdowns further and establish strict punishment measures based on a zero-tolerance policy."

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