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File photo of a gas station in Seoul. (Yonhap) |
[Alpha Biz= Kim Jisun] Korea National Oil Corp. (KNOC) apologized after a government-backed budget gas station sharply raised diesel prices by more than 600 won in a single day, sparking controversy.
KNOC President Son Joo-seok said in a statement on March 11 that the company deeply regrets the inconvenience caused to consumers, noting that budget gas stations are meant to help ease fuel costs and stabilize domestic oil prices.
The controversy began after a budget gas station in Gwangju, Gyeonggi Province, raised its diesel price by 606 won on March 5 compared with the previous day. The station had increased diesel prices by 850 won within five days following the outbreak of conflict in the Middle East.
KNOC said it identified the issue during routine price monitoring and took corrective action. The station later lowered the price by 604 won, bringing it below the local average.
Following the incident, the Ministry of Trade, Industry and Energy said it will conduct a nationwide review of price changes at budget gas stations and take strict action if excessive price increases are confirmed.
KNOC also plans to introduce a “one-strike out” policy, under which stations that sell fuel at unjustifiably high prices could face immediate contract termination and restrictions on reentry into the program.
Budget gas stations were introduced by the government to promote price competition and reduce fuel costs by supplying fuel at lower prices through joint purchasing systems.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
