KNOC to open more discount gas stations

Oil corporation strives  to meet target of 1,300  outlets by 2015


The state-run Korea National Oil Corp. is stepping up its push for discount gas stations by establishing a support center and a task force for the project aimed at curbing petrol prices.

The Oil Distribution Support Center began operation on Thursday, with the aim to set up over 1,100 more discount gas stations throughout the nation.

The KNOC created the center and the Domestic Supply & Distribution Taskforce after the government announced plans last month to enhance competition in the petroleum market and improve the distribution system.

The center will be in charge of pushing policies related to discount gas stations and other distribution system-improvement issues, KNOC officials said.

The task force plans to drive new services such as electronic commerce and construction of an integrated computer network as well be involved in the expansion of discount gas stations.

“The government’s policy to improve oil distribution systems will be boosted by the establishment of the Oil Distribution Support Center and Domestic Supply & Distribution Taskforce,” said KNOC CEO Kang Young-won.

“We also expect that opinions of oil industry insiders will be better collected and more efficiently reflected in policies,” he said.

In cooperation with the government, the KNOC has pushed for the opening of discount gas stations since early this year.

There are currently 157 discount gas stations throughout the nation and 198 more will open by the end of the month, according to the KNOC. If the number reaches 1,300 by 2015, such stations will take over 10 percent of the gas stations nationwide.

The low-priced gas stations are one of the government’s measures to offer oil at about 50 won to 100 won per liter cheaper than other stations by cutting various costs.

Gasoline prices have been heightened and distribution channels have been dominated by the nation’s top four refiners ― SK Energy, GS Caltex, S-Oil, Hyundai Oilbank ― which together have made up more than 90 percent of the nation’s total petrol supplies. Some still raise doubts, however, about the efficacy of the stations and state intervention in petrol prices.

”More discount gas stations are opening, having a positive effect on stabilizing domestic oil prices. We spotted price containment effects ― the average gasoline price in areas with discount gas stations is lower than the national average,” said an official at KNOC.

By Park Min-young  (claire@heraldcorp.com)