GS Caltex dips into state oil reserves

GS Caltex Corp., the nation’s No.2 oil refiner, on Wednesday said it has borrowed 870,000 barrels of diesel oil from reserves kept by the Korea National Oil Corp.

This marks the first time in three years that the refiner has dipped into government fuel reserves.

The borrowed fuel is expected to be released at local gas stations next week.

GS Caltex has recently been unable to properly provide to gas stations due to a fuel shortage.

The company had notified service stations in areas such as South Gyeongsang Province that it would not be able to supply them.

GS Caltex previously said fuel demand had risen almost 30 percent year-on-year for gasoline and about 40 percent for diesel oil.

(jemmie@heraldcorp.com)