On April 14, a self-employed gas station owner, surnamed Kim, operating in Yongin, Gyeonggi Province, said, "If our price is just 10 won higher than other stations, customers immediately stop coming, and daily sales have dropped to less than half," adding, "It seems it would be better to close the business altogether."

Kim continued, "Other nearby gas stations are closing one by one, so it doesn't feel like someone else's problem. Since I can't raise the selling price, but card fees and labor costs keep going out, the more I stay in business, the greater the losses become."

The growing outcry from the field is attributed to the structural limitations of the "petroleum price ceiling system," which makes it difficult to fully reflect market trends. In particular, the gap between the market price and the ceiling price has widened further due to the third freeze of the ceiling. Although it was an unavoidable measure to stabilize prices, as it drags on, the gap with actual costs is widening. Gas stations are forced to suppress their selling prices under government scrutiny, enduring losses in silence.

Nonghyup Budget Gas Station located in Yongin, Gyeonggi Province. The place looks quiet due to few customers. Photo by Seo Mideum

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Although the situation varies by gas station type, company-operated, independently operated, and budget gas stations are all facing increased profitability pressures. Company-operated gas stations, run directly by oil refiners, can keep prices relatively low, but must absorb greater losses. Independently operated gas stations, run by private business owners, directly experience a loss of demand if they lose price competitiveness. Budget gas stations, which have benefited from government support to offer low prices, have seen their competitive edge weaken as the price gap with regular gas stations has narrowed since the introduction of the price ceiling system.

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Lee, who operates a company-run gas station in Seongdong-gu, Seoul, said, "From morning until night, there was a constant stream of customers," adding, "On days when the cars pile up, it even creates dangerous situations with congestion on both the road and sidewalks." However, an increase in customers does not translate into improved profitability. Because selling prices are kept low, the more volume sold, the greater the losses. A gas station official commented, "It seems that company-operated stations are feeling the most pressure from the government."

Budget gas stations, which have traditionally supplied fuel at lower prices, are also being directly affected. The distinctiveness of budget gas stations, which maintained low prices thanks to government support, has weakened as the price gap with regular stations has narrowed. Operators of budget gas stations agreed that customer numbers and overall sales have declined compared to February.

At around 11 a.m. on the 13th, the gas station in Seongdong-gu, Seoul, visited was known for being cheaper than budget gas stations, resulting in a line of vehicles. Photo by Bokyung Jang

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Kim, who manages a budget gas station in Gwangjin-gu, Seoul, said, "Even regular customers and those driving cargo trucks are not coming these days, and sales have noticeably dropped." He added, "Some customers come specifically to the budget gas station, only to complain that prices are actually higher than at company-operated stations." He expressed concern, saying, "Gas stations operating as rentals are under even greater pressure from fixed costs, and nearby stations are struggling. I am worried that more stations will close down in the second half of this year."

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As a result, some gas stations have even begun to raise prices, revealing the limitations of the policy's effectiveness. On this day, the average gasoline price in Seoul was recorded at 2,027 won, while in Gyeonggi Province it was 2,001 won. A representative from the Korea Oil Distribution Association stated, "The actual operating profit margin is less than 1%," adding, "There is a severe lack of effective measures to support gas stations."