Contrary to the intent behind introducing budget gas stations for "price stability through lower fuel costs," after the second oil price ceiling took effect, budget gas stations saw fuel prices rise more than the average increase at the four refiners' stations.
In particular, the price increase trend was most pronounced at budget gas stations operated by Korea Expressway Corporation (KEC) at highway rest areas nationwide. Korea Expressway Corporation (KEC) said the faster reflection of the second oil price ceiling was due to high turnover despite small storage capacity for petroleum products.
Budget gas stations were introduced in 2011 when international oil prices surged and domestic gasoline prices neared 2,000 won per liter, to ease the financial burden on ordinary people.
According to the refining industry on the 3rd, the gas station brand operated by Korea Expressway Corporation (KEC) at highway rest areas is "EX-Oil (OIL) Budget," the brand operated by Korea National Oil Corporation (KNOC) is "Self-Employed Budget," and the brand operated by NongHyup is "NH Budget." Korea Expressway Corporation (KEC) and Korea National Oil Corporation (KNOC) are supplied petroleum products by SK Energy, while NongHyup is supplied by S-Oil.
According to Opinet, the oil price information system of Korea National Oil Corporation (KNOC), as of the 2nd, the average retail gasoline price at EX-Oil budget gas stations was 1,973.70 won per liter. That is higher than Self-Employed Budget (1,887.28 won) and NH Budget (1,911.42 won), and even higher than the average gasoline price at the four refiners' stations (1,922.33 won).
Diesel prices show the same pattern. On the 2nd, the average diesel price at EX-Oil budget gas stations was 1,979.63 won per liter, not only surpassing the four refiners' average diesel price (1,913.17 won) but also ranking as the most expensive among budget brands. The average diesel prices at Self-Employed Budget and NH Budget were 1,872.71 won and 1,910.99 won, respectively.
The average gasoline price at EX-Oil budget gas stations began exceeding the budget-station average on Mar. 29. Until then, the average gasoline price at NH NongHyup budget gas stations had been the highest among the budget brands.
Since the second price ceiling took effect on the 27th of last month, the price increase at EX-Oil budget gas stations has outpaced not only other budget brands but also the four refiners' average. Between Mar. 27 and Apr. 2, gasoline and diesel sold at EX-Oil budget gas stations rose by 194.17 won and 200.68 won, respectively.
During the same period, gasoline and diesel at Self-Employed Budget rose by 101.97 won and 89.28 won, respectively. At NH NongHyup budget gas stations, gasoline and diesel rose by 90.97 won and 92.03 won, respectively, smaller increases than at EX-Oil budget gas stations. The average price increases at the four refiners' stations were 78.44 won for gasoline and 73.92 won for diesel.
Actual cases also show that EX-Oil budget gas stations generally sell fuel at prices higher than the local average.
The EX-Oil Mannam Plaza (Busan-bound) gas station in Seocho District, Seoul, was known as a place with cheap fuel before the United States and Israel struck Iran. The situation is now the opposite.
As of the 3rd, that station is selling gasoline and diesel at 1,986 won. It is the eighth most expensive among 30 stations in Seocho and above the district average (gasoline 1,930 won, diesel 1,907 won). At a station nine minutes away by car from EX-Oil Mannam Plaza, Seocho's cheapest station lists gasoline at 1,786 won and diesel at 1,761 won.
At EX-Oil Hyeonpung (toward Masan), as of the 3rd, gasoline and diesel were 1,984 won and 1,983 won, respectively. That is higher than the average in Dalseong County, Daegu (gasoline 1,907 won, diesel 1,905 won), and also more expensive than K Gas Station 1.1 kilometers away (both gasoline and diesel 1,938 won).
EX-Oil Jangheung Jeongnamjin in Jangheung County, North Jeolla, is also selling gasoline (1,986 won) and diesel (1,983 won) above the county average (gasoline 1,964 won, diesel 1,960 won). There, too, fuel is about 40 won pricier than at J Gas Station 4.1 kilometers away (both gasoline and diesel 1,945 won).
A Korea Expressway Corporation (KEC) official said, "At Mannam Plaza, the gasoline tank capacity is 130,000 liters, but 100,000 liters were sold on the first day of the second price ceiling, so the inventory brought in before Mar. 26 ran out in just one day, and the second ceiling was reflected early," adding, "At most EX-Oil budget gas stations, fuel inventory was quickly depleted when the first price ceiling was implemented, so we inevitably adjusted retail prices to the second ceiling criteria."
According to Korea Expressway Corporation (KEC), EX-Oil budget gas stations sell an average of 40,000 liters per day, about four times city stations (10,000 liters). Conversely, EX-Oil budget stations have an average storage capacity of 170,000 liters. Korea Expressway Corporation (KEC) estimates the average storage capacity of city stations at 300,000 liters.
Meanwhile, the first oil price ceiling, implemented on the 13th of last month, was 1,724 won for gasoline and 1,713 won for diesel. The second oil price ceiling, in effect since the 27th of last month, is 1,934 won for gasoline and 1,923 won for diesel. The oil price ceiling is a cap on the price at which refiners supply petroleum products to gas stations, not the retail price at gas stations.