The Korea Fair Trade Commission began on the 9th an on-site probe into alleged price collusion on petroleum products by domestic refiners, according to reports. After the U.S. airstrikes on Iran, there were claims that domestic petroleum product prices surged because refiners raised prices. Accordingly, the Korea Fair Trade Commission (FTC)'s on-site investigation of refiners is seen as a move to stabilize oil prices.
According to ChosunBiz reporting, the Korea Fair Trade Commission (FTC)'s Cartel Investigation Bureau on Tuesday morning is conducting on-site inspections of SK Energy, GS Caltex, S-OIL and Hyundai Oilbank. The Korea Fair Trade Commission (FTC) reportedly detected suspected price collusion on petroleum products by refiners and launched an investigation.
As of Tuesday, the average retail price of gasoline at Seoul gas stations exceeded 1,900 won per liter. The retail price rose 7.7%, from 1,754 won per liter on the 27th of last month, just before U.S.-Israel strikes on Iran, to 1,889 won on the 5th, and it continues to climb. Over the same period, diesel jumped 13.7%, from 1,667 won per liter to 1,895 won.
While it is true that international oil prices have risen since the Middle East crisis, they are typically reflected in domestic gasoline and diesel prices with a lag of one to two weeks. This raised suspicions that some gas stations and refiners preemptively raised prices to maximize revenue.
President Lee Jae-myung said at an extraordinary Cabinet meeting on the 5th, "It is not as if there has been a serious disruption in fuel supply, but suddenly gas station gasoline prices have skyrocketed," adding, "Quickly designate realistic maximum prices by region and fuel type."
The government launched the "task force of related ministers for special management of livelihood prices." The Korea Fair Trade Commission (FTC) said on the 6th, "We will mobilize all local offices to check for possible collusion, focusing on high-priced gas stations, and immediately commence on-site inspections based on monitoring results, responding on all fronts."
With the Middle East crisis ongoing, international oil prices on Tuesday broke $100 per barrel. It is the first time since July 2022 that West Texas Intermediate (WTI) in the United States topped $100 per barrel intraday. Minister Kim Jung-kwan of the Ministry of Trade, Industry and Resources met with officials from the four refiners on Tuesday morning and said, "Please set transparent and fair petroleum prices so that the burden of rising international oil prices due to the recent situation in the Middle East is not unilaterally and excessively passed on to consumers."