Government Strengthens Oversight of Affordable Gas Stations: "Contracts Will Not Be Renewed for Excessive Price Hikes"

As domestic fuel prices show signs of soaring due to recent instability in the Middle East, the government has begun to strengthen oversight of "Affordable Gas Stations."

According to Korea National Oil Corporation (KNOC) on March 6, the corporation sent a text message the previous day to all Affordable Gas Stations nationwide under the title "Request to Refrain from Excessive Price Increases."

On the 6th, gasoline prices are displayed at a gas station in downtown Seoul amid rising international oil prices due to the aftermath of the war between the United States and Iran. Photo by Yoon Dongju

Through the text message, KNOC stated, "Recently, some Affordable Gas Stations have been found to excessively raise their selling prices," and added, "For gas stations that have sharply increased prices or are taking excessive margins—particularly since February 28, when the United States and Israel began airstrikes on Iran—contrary to national policy, we plan to implement necessary management measures, including additional surcharges, evaluation point deductions, or non-renewal of contracts."

KNOC further stated, "In particular, please be careful not to excessively raise prices on newly purchased supplies under the pretext of expected future price increases," and requested cooperation so that Affordable Gas Stations operate in line with their original purpose of contributing to domestic oil price stabilization.

The Affordable Gas Station initiative is a policy introduced by the government in 2011 to break up the oligopoly of existing refiners and encourage competition in the market.

KNOC signs contracts with Affordable Gas Station operators on a yearly basis, warning that if operators excessively raise fuel prices, their contracts may not be renewed and their business licenses may be revoked.

As of the end of last year, there were a total of 1,318 Affordable Gas Stations nationwide, accounting for 12.3% of all gas stations. Of these, 395 independently operated Affordable Gas Stations are managed by KNOC.

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