Oil Prices Raised Immediately After War Broke Out... Prosecutors Indict Four Major Oil Refinery Companies for 14 Trillion Won Price Collusion

Oil refiners dominating the domestic market have been collectively indicted on charges including colluding on the timing and extent of petroleum product price hikes immediately following the U.
S. -Iran war, thereby disrupting oil prices by a scale of approximately 14 trillion won. The prosecution determined that two oil refiners directly colluded on prices, with the other two following suit, resulting in anti-competitive effects worth 26 trillion won across the entire market. On the 6th, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Na Hee-seok) announced that it had indicted the corporations of HD Hyundai Oilbank, SK Energy, GS Caltex, and S-Oil, as well as HD Hyundai Oilbank's Price Determination Department Head A, Senior Manager B, Legal Affairs Director C, and GS Caltex Domestic Sales Division Head D, on charges including violations of the Fair Trade Act.
A was indicted under detention. According to the prosecution, immediately after the U. S. -Iran war, pricing officials at HD Hyundai Oilbank and SK Energy coordinated the timing and extent of price hikes in advance, and GS Caltex and S-Oil followed suit to raise prices.
The prosecution determined that this collusion was not a one-time act immediately following the war, but rather a case where the practice of exchanging price information, which had continued since July 2024, was blatantly revealed amidst an international crisis. During the investigation, internal messenger conversations and meeting minutes from oil refineries were also secured. At GS Caltex, a conversation was confirmed in which the response to the question, "You said we act independently and with conviction?" was, "We have no conviction. " At S-Oil, it was found that conversations took place such as, "We are raising prices by another 102 won today.
We look like we will earn 2 trillion won this year," and "As expected, a company that lives off war. Long live Trump. " However, the prosecution explained that while GS Caltex and S-Oil were recognized for "apparent collusion" involving price tracking, they could not be indicted on charges of price fixing because direct evidence of collusion was not confirmed. The oil refining industry's customary practices of "total purchase contracts" and "post-settlement systems" also came under scrutiny.
It is alleged that the four oil refiners forced independent gas stations to purchase only their own products and blocked cheaper distribution channels by imposing hefty damages for contract violations. In fact, internal messenger conversations reportedly contained remarks to the effect of, "We can't go (to another company). The moment we do, the damages will be ruined," and "We must make them suffer through lawsuits. " Furthermore, it was confirmed that HD Hyundai Oilbank and GS Caltex destroyed evidence by deleting relevant data after anticipating the Fair Trade Commission's plans for on-site investigations.
It was also revealed that three oil refiners falsely reported supply prices lower than the actual rates to the Ministry of Trade, Industry and Energy, and the relevant data is scheduled to be shared with the ministry.
scottchoi15@fnnews.com Choi Eun-sol Reporter