SK Energy will be the first in the refining industry to notify gas stations in advance of the prices of petroleum products it supplies, on a weekly basis. The move seeks to enhance the effectiveness of abolishing the post-settlement system, which the Democratic Party of Korea, the government, and the refining industry agreed to in April.
On the 22nd, SK Energy announced it will introduce a system to notify, one week in advance, the prices of petroleum products such as gasoline and diesel supplied to gas stations and dealers. For example, if it gives advance notice of petroleum product prices on Monday, those prices will apply from Tuesday through the following Monday.
Until now, domestic refiners such as SK Energy, GS Caltex, and HD Hyundai Oilbank adopted a post-settlement method, in which they confirmed supply prices generally a month later by reflecting market prices after supplying petroleum products. While this reflected the characteristics of a highly volatile market, including international crude oil and petroleum product prices, there were also complaints about "blind settlement," as gas stations set consumer selling prices without knowing the exact purchase cost.
There was also criticism that, like during a U.S.-Iran war when international crude prices rise, it encourages increases in consumer prices
as gas stations, not knowing petroleum product prices, may raise selling prices on expectations that future supply prices will go up.
The Democratic Party of Korea's "Committee for Protecting the Underprivileged," the Ministry of Trade, Industry and Resources, the Financial Services Commission, and the Korea Fair Trade Commission reached an agreement in April with the four domestic refiners to abolish the post-settlement system. Accordingly, SK Energy abolished post-settlement and introduced an advance notification system. Other refiners are also reviewing the introduction of similar advance notification systems.
SK Energy will also temporarily implement a policy starting on the 23rd to support a 50 won-per-liter discount on diesel for vehicles at SK gas stations. At 73 company-operated gas stations, the selling price will be cut by 50 won, and independently operated stations will receive discount subsidies so they can implement the same level of price cuts. SK Energy said, "The 50 won diesel price cut support policy will operate temporarily for up to one month until the end of the maximum price system for petroleum products, in line with the normalization of international petroleum product prices."