The government Thursday said it will clamp down on oil refiners overcharging for fuel by pushing their corporate clients to switch to gas stations with more competitive pricing.
The fresh fuel price control plan is based on findings that some gas stations were able to maintain high prices because government and corporate fleet cars formed a large portion of their returning customers.
“Those who refuel corporate and public cars have no incentives to find a cheaper option so they continue pumping gas at the nearest gas stations in the area where prices are relatively higher,” Finance Minister Bahk Jae-wan said in a meeting to stabilize prices.
“We will encourage all public and corporate vehicles to use gas vouchers issued at three gas stations offering the most competitive pricing in the area.”
The plan is Seoul’s latest attempt to curb oil prices as retail fuel prices rebound on high international oil prices. Local oil refiners have come under government pressure to cut margins as the inflation rate stayed above the bank’s target rate of 2 to 4 percent.
Bending to the pressure, the country’s four major oil refiners had shown a 60-won-per liter price reduction in April, a far smaller drop than the industry and consumers had expected.
The fresh plan announced today resumes Seoul’s push to slash fuel prices, raising the industry’s big profit margins as an issue.
Bahk said it is a concern that consumer prices are growing at a faster-than-expected pace, partly due to the heavy rainfall and extreme heat.
“Vegetable prices remain high in the wake of typhoons and prolonged heavy rains and gold prices are also on the rise.”
Consumer Price Index for July jumped 4.7 percent in July from a year ago.
By Cynthia J. Kim (
cynthiak@heraldcorp.com)
