After the government implemented a petroleum price ceiling out of concern over a spike in fuel prices caused by the Middle East crisis, HD Hyundai Oilbank stations had the highest number of days when their fuel prices were the cheapest among the four domestic refiners. They were followed by GS Caltex stations, which also had many days with the lowest prices. There were no days when SK Energy or S-Oil offered the cheapest fuel.
This matches the ranking by the number of company-operated stations among stations carrying the four refiners' brands. A company-operated station is one run directly by a refiner. An independently operated station is run by a self-employed owner under a specific refiner's brand. As refiners have aligned with government policy through their company-operated stations, this appears to be the result.
Based on Opinet, the oil price information system of the Korea National Oil Corporation (KNOC), an analysis by day over the 28 days from Mar. 13, when the first petroleum price ceiling took effect, to Apr. 9, the day before the third ceiling was applied, found that HD Hyundai Oilbank had the most days—19—when its gasoline price was the lowest.
The four refiners are SK Energy, GS Caltex, HD Hyundai Oilbank, and S-Oil. The station brand with the second-most days selling at the lowest price was GS Caltex (nine days). For diesel as well, HD Hyundai Oilbank had the most days with the lowest price at 20. GS sold diesel at the lowest price for eight days, ranking second.
As of 10 a.m. on the 10th, in eight of Seoul's 19 districts—including Gangseo, Dongdaemun, Dongjak, and Seocho—the cheapest stations were HD Hyundai Oilbank company-operated stations. Even though the average prices for gasoline and diesel in Seoul surpassed 2,000 won, these stations were selling both gasoline and diesel in the 1,900-won range.
The refining industry interprets this trend as stemming from each company's share of company-operated stations. HD Hyundai Oilbank has the highest share of company-operated stations among the four refiners. Of the 2,264 stations carrying the HD Hyundai Oilbank brand, about 240 (10.6%) are company-operated.
The refiner with the next-highest share of company-operated stations is GS Caltex. Of GS Caltex's 1,994 total stations, 9.1% (182) are company-operated. SK Energy operates only 3% (80) of its total 2,638 stations directly. S-Oil has no company-operated stations among its 2,267 total stations. The higher the share of company-operated stations, the more days they sold at the lowest price.
This is also evident in the price gap between company-operated and independently operated stations. Since the first and second petroleum price ceilings took effect, gasoline and diesel sold at company-operated stations have consistently been cheaper than at independently operated stations.
On Mar. 13, the first day of the first price ceiling, company-operated stations sold gasoline at 1,803.75 won per liter (L), while independently operated stations sold it at 1,867.14 won. On the 9th, the last day the second price ceiling applied, gasoline at company-operated stations (1,952.92 won) was still cheaper than at independently operated stations (1,986.58 won).
HD Hyundai Oilbank's lower retail prices appear to be due to the refiner's lower wholesale supply prices to stations. In the third week of March, when the first petroleum price ceiling applied, HD Hyundai Oilbank supplied gasoline at the lowest price (1,719.61 won) among the four refiners.
In the fourth week of March, when the second petroleum price ceiling was reflected for three days, the gasoline supply price was also lowest at HD Hyundai Oilbank (1,722.85 won).
Looking at diesel supply prices, in the third week of March, GS Caltex supplied at 1,707.77 won, which was 0.97 won per liter cheaper than HD Hyundai Oilbank (1,708.74 won). However, in the fourth week of March, HD Hyundai Oilbank supplied diesel at the lowest price (1,703.01 won).
An industry official said, "Until before the petroleum price ceiling was implemented, it was common for company-operated station prices to be higher than independently operated stations, but the trend has reversed," adding, "Company-operated stations are selling fuel at relatively lower prices, which in some cases is drawing complaints from nearby independently operated stations."