Oil Distributors Association Proposes Temporary Reduction of Road Occupancy Fees for Gas Stations Amid High Oil Prices

The Korea Oil Distributors Association has submitted a proposal to the Office for Government Policy Coordination and the Ministry of Land, Infrastructure and Transport, calling for institutional improvements such as a reduction in road occupancy fees for gas stations, in response to soaring international oil prices and increased exchange rate volatility due to instability in the Middle East.

On the 9th, vehicles are refueling at a gas station in downtown Seoul. Photo by Yonhap News

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On April 14, the association released an official statement, saying, "The recent rise in international oil prices is increasing the fuel cost burden on the public and causing a rise in logistics and transportation costs, which is further exacerbating difficulties across the entire livelihood economy." The association added, "As gas stations are on the front lines of directly supplying fuel and are the first to feel the impact of external shocks, institutional support is needed to alleviate management burdens."

The association also emphasized the public function of gas stations. It stated that gas stations are not merely commercial facilities, but essential infrastructure supporting citizens’ daily movements and local logistics as the final link in the national energy supply chain.

Furthermore, the association pointed out that, although gas stations play a critical public role in supplying fuel to emergency vehicles such as fire trucks, ambulances, and police cars during disasters or emergencies, they do not receive any special reduction in road occupancy fees, which they are required to pay in order to secure access roads.

Accordingly, the association called for a temporary reduction in road occupancy fees. It argued that the current high oil price situation constitutes a livelihood economic crisis equivalent to a disaster or special circumstance as stipulated in Article 68 of the Road Act and Article 73 of its Enforcement Decree, making it necessary to temporarily reduce the fees imposed on gas stations for three to six months. The association also noted the precedent of a three-month reduction in road occupancy fees during the COVID-19 pandemic.

In addition, the association raised the need for long-term institutional improvements. While the current system provides a 50% reduction in road occupancy fees for certain facilities such as electric and hydrogen vehicle charging stations, gas stations-which are a core part of the national energy supply chain-are excluded, resulting in an equity issue. The association called for amending Article 73, Paragraph 2 of the Enforcement Decree of the Road Act to include gas stations among the facilities eligible for a 50% reduction in road occupancy fees, similar to electric and hydrogen vehicle charging stations.

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