Sejong: Industry Minister Kim Jung-kwan vowed Monday a stern response against gas stations that excessively hike fuel prices despite a price cap system, after conducting a spot check on a gas station suspected of unfair market practices, Kim's office said.
According to Yonhap News Agency, a special government inspection team, led by Kim, visited an unidentified gas station in Seoul that raised gasoline and diesel prices by a bigger margin than the adjusted price ceiling increases for such products implemented last week. The Ministry of Trade, Industry and Resources reported this incident.
On Thursday, the government announced new price ceilings for gasoline and diesel supplied to gas stations by oil refineries, raising them by 210 won each to 1,934 (US$1.28) won and 1,923 won, respectively, reflecting a recent surge in global oil prices. However, the Seoul gas station was found to have hiked its retail gasoline and diesel prices by 214 won and 216 won, respectively, just a day after the announcement.
The ministry said it will look into whether the gas station, suspected of selling its stock purchased at lower prices at higher prices, committed any unfair market practices.
"We understand that the fuel industry is facing mounting difficulties due to the recent surge in global oil prices, but excessive price hikes despite the government's implementation of a price cap system increase burden on people's livelihoods and can damage trust in the market," Kim said in a press release, vowing a stern response to such actions.
South Korea introduced the fuel price cap system earlier this month for the first time since 1997, in a bid to ease cost burdens on people after the domestic fuel industry immediately raised prices following the outbreak of the Iran war in late February.