Gasoline Prices in Seoul Soar to 2,598 Won per Liter...Government Targets Economy Gas Stations, Warns of Possible Contract Terminations

[Financial News] Since the escalation of tensions in the Middle East, the highest gasoline price in Seoul has surged to 2,598 won per liter. Premium gasoline has climbed to 2,996 won per liter, nearing the 3,000-won mark. The average gasoline price has also exceeded 1,850 won per liter.
In response, the government has announced that it will first take strong action against excessive price hikes at Economy Gas Stations.

According to the Seoul Economic Daily on the 6th, the Korea National Oil Corporation (KNOC) sent a text message on the 5th to Economy Gas Station operators nationwide, asking them to refrain from excessive retail price increases.
In the message, KNOC stated, "For gas stations that raise prices sharply after February 28 or take excessive margins in a way that does not align with national policy, we plan to implement necessary management measures such as additional surcharges, lower evaluation scores, and non-renewal of contracts."
In particular, non-renewal of contracts is seen as an extreme measure that would effectively strip operators of their Economy Gas Station business rights.
The Economy Gas Station program is a government initiative designed to provide lower fuel prices. It is run by granting operating rights to small business owners through the Korea National Oil Corporation, Korea Expressway Corporation, and NongHyup Agribusiness Group Inc. KNOC signs contracts with Economy Gas Station operators on a one-year basis.
These measures were announced because fuel prices have been surging even at some Economy Gas Stations. As of the 6th, one Economy Gas Station in Seoul was confirmed to be selling regular gasoline at 1,899 won per liter, higher than the national average.
A KNOC official said, "We will closely monitor trends in retail prices," and stressed, "We ask operators to ensure there are no cases where prices are raised excessively above recent purchase costs on the grounds of expected future price increases."
As of the end of last year, there were 1,318 Economy Gas Stations nationwide, accounting for 12.3% of all gas stations. Of these, 395 independently operated Economy Gas Stations are managed by KNOC.

sms@fnnews.com Reporter Sung Min-seo Reporter