Korea Expressway Corporation to Bear 6 Billion Won to Drop Expressway Gas Prices by 100 Won During Chuseok... Local Gas Stations Backlash [Roundup]

[Financial News] The Korea Expressway Corporation will lower fuel prices by 100 won per liter at 226 gas stations on government-funded expressways for the four-day Chuseok holiday period, bearing an investment of approximately 6 billion won. It has been confirmed that the settlement will be made by having gas station operators first lower prices, after which the Corporation will deduct the discount amount from the rent to be received from September onwards. While the government maintains that this is a temporary measure to alleviate the burden on travelers returning home due to high fuel prices, general gas stations and the petroleum distribution industry are pushing back, arguing that applying additional discounts only to specific gas stations could distort price competition.
According to the government and industry on the 21st, fuel prices at 226 gas stations on government-funded expressways managed by the Korea Expressway Corporation will be lowered by 100 won per liter from the 24th to the 27th compared to the 17th. The government announced this plan at the Emergency Economic Headquarters meeting and the Economic Ministers' Meeting on the 18th, stating that it is "a measure to share the burden of high oil prices with the public sector."
The Korea Expressway Corporation fully covers the discount costs. If a gas station operator sells fuel at a price 100 won lower per liter during the holiday period, the Corporation settles the costs by deducting the discount amount from the rent to be received later. The settlement amount is calculated by multiplying the actual sales volume by fuel type and day by the discount amount actually applied.
The Korea Expressway Corporation anticipates daily sales of approximately 15 million liters during the holiday period and estimates the cost required for discounts over the four days at about 6 billion won. The final scale may vary depending on actual sales volume and discount amounts.
In this regard, the Korea Gas Station Association argued that applying additional price reductions only to highway gas stations would widen the price gap with regular gas stations, making normal price competition difficult. They maintain that, particularly during the Chuseok holiday when long-distance travel is concentrated, lower prices at highway stations could lead to customer attrition and a decline in sales at gas stations on national roads and in urban areas.
The Korea Petroleum Distribution Association also issued a statement on the same day demanding a review of the policy. The association maintains that approximately 9,000 general gas stations nationwide are simultaneously burdened by rising international oil prices, price caps, and costs such as rent, labor, and credit card fees. However, it has not been estimated how much the price reduction at highway gas stations will actually lead to customer attrition or a decrease in sales at general gas stations.
Domestic gas station prices have been falling slightly so far, despite the rise in international oil prices. According to Opinet, the Korea National Oil Corporation, the average retail price of gasoline at gas stations nationwide during the third week of this month was 1,858.6 won per liter, and diesel was 1,843.9 won, down 0.5 won and 0.1 won, respectively, from the previous week. The government also maintained the same levels as before for the 10th maximum petroleum prices, which have been in effect since the 19th, at 1,784 won per liter for gasoline, 1,773 won for diesel, and 1,380 won for kerosene.
Separately from the price reductions at highway gas stations, the government has also extended the fuel tax reduction measures for two months until the end of this November. The reduction rates remain at 15% for gasoline and 25% for diesel and LPG butane. Drivers who do not use highway gas stations will also continue to receive the existing fuel tax reduction benefits.
The Korea Gas Station Association stated, "If a price reduction policy is pursued, practical support measures and loss compensation plans must be devised to enable gas stations nationwide to participate together, rather than concentrating benefits on specific stations."

[email protected] Kim Mi-hee, Choi Ga-young Reporter