Koo Yun-cheol Warns of Criminal Penalties for Hoarding and Stockpiling of Oil Products

According to The Financial News, Koo Yun-cheol, Deputy Prime Minister for Economic Affairs and Minister of Finance and Economy, announced on the 12th the implementation of a price ceiling on petroleum products and a ban on hoarding and stockpiling. He stated, "If any violations of the law are uncovered, we will respond strictly with corrective orders and criminal penalties."
Presiding over the meeting of the Ministerial Task Force on Special Management of Consumer Prices at Government Complex Seoul that day, Koo said, "The government will respond firmly to excessive price hikes that exploit the crisis situation," announcing the new measures.
The government set the maximum wholesale prices charged by refiners from midnight on the 13th at 1,724 won per liter for regular gasoline, 1,713 won for automotive diesel, and 1,320 won for kerosene used for heating.
Depending on developments in the Middle East and movements in international oil prices, the government plans to reset the maximum prices every two weeks.
At the same time, to block illicit practices such as hoarding by refiners and gas stations, and refusal to release or sell supplies, a public notice banning hoarding and stockpiling of petroleum products will also take effect on the 13th.
Under this measure, refiners must ensure stable supply by providing at least 90% of the volume shipped during the same period a year earlier. Gas stations may not, without just cause, refuse to sell to consumers or supply excessive quantities to specific companies.
Violators may face corrective orders under the Price Stabilization Act, as well as imprisonment of up to three years or a fine of up to 100 million won.
Koo Yun-cheol said, "In response to the crisis in the Middle East, all ministries will make every effort, with a heightened sense of urgency, to stabilize people’s livelihoods," adding, "We will operate a Hoarding and Stockpiling Report Center and carry out thorough on-site inspections to firmly establish the price ceiling system."
skjung@fnnews.com Jung Sang-geun Reporter