As SK Energy decided to pay at least 1 million won a month to its branded gas stations struggling after the petroleum price ceiling took effect, stations under other brands are on edge. SK Energy's independently operated station owners welcomed the move, saying it gave them a brief breathing space.
Other refiners, excluding SK Energy (GS Caltex, S-Oil, HD Hyundai Oilbank), said they are not yet preparing any measures to support gas stations directly.
According to the refining industry on the 13th, SK Energy decided to provide "high oil prices and crisis recovery support funds" to about 2,500 independently operated stations. A basic amount will be allocated to all SK independent stations, with additional funds provided based on each station's purchase volume.
First, for petroleum product volumes ordered by independent stations from Mar. 13 to 31, when the price ceiling took effect, 30 won per liter (ℓ) will be deducted at the next purchase. In addition, SK plans to deliver 1 million won in Onnuri gift certificates to all SK independent stations.
In April and May, the plan is to proceed by paying a basic subsidy of 1 million won and adding extra funds based on purchase volume. SK Energy set a monthly cap of up to 20 billion won for the high oil prices and crisis recovery support funds. A simple calculation works out to 8 million won per station each month.
SK Energy said it decided on cash support for coexistence because the management of independent stations has visibly deteriorated. Since the price ceiling took effect, independent station operators have said sales plunged as they lost price competition to company-operated stations and thrifty stations. The drop stems from company-operated stations sharply lowering prices under a structure in which the government directly controls wholesale prices.
In fact, more stations are suspending operations. According to Opinet, the Korea National Oil Corporation (KNOC) fuel price information site, as of the previous day 10,324 stations nationwide were operating. Compared with 10,435 at the start of the year, 111 have suspended or closed. In particular, since the first day of the price ceiling (10,396), 72 stations have stopped operating.
The domestic refining industry has often run support programs amid fierce competition among the four companies to attract independent stations. There were also systems that gave incentives to stations that sold more petroleum products. However, after the price ceiling took effect, refiners did not implement such programs, anticipating weak results.
Unlike SK Energy, GS Caltex, HD Hyundai Oilbank, and S-Oil said they are not considering support programs for gas stations. Owners of those branded stations are voicing complaints, saying they have become disadvantaged in competition among independent stations as well, after company-operated and thrifty stations. On online communities of owners, many posts asked, "Any news of support?"