The National Tax Service said it will conduct on-site inspections starting on the 10th of gas stations and others that underreported gasoline and diesel sales. It also said it will launch tax audits if tax evasion is confirmed. With gasoline and diesel prices surging since the Middle East crisis, the aim is to catch businesses profiting through illegal acts.
According to the National Tax Service, more than 300 personnel from seven regional tax offices and 133 district tax offices nationwide will conduct on-site inspections of petroleum product sellers, including gas stations across the country. The main inspection items are: ▲ petroleum transactions without documentation, disguised or fabricated transactions ▲ underreporting sales after high-priced sales ▲ production and distribution of fake oil ▲ improper diversion of tax-free fuel.
The previous day, the average retail prices of gasoline and diesel at gas stations nationwide both exceeded 1,900 won per liter. On the 27th of last month, just before the U.S.-Israel strike on Iran, gasoline was 1,754 won per liter and diesel was 1,667 won, meaning prices rose 200–300 won in 10 days. Domestic gasoline and diesel prices have typically risen with a one- to two-week lag after international oil prices climb, but this time the speed of price pass-through has been unusually fast, observers noted.
In response, President Lee Jae-myung ordered government ministries to crack down on illegal acts such as hoarding and cornering. He also instructed the implementation of a fuel price ceiling system. The Korea Fair Trade Commission detected suspected collusion by the four domestic refiners (SK Energy, GS Caltex, S-OIL, Hyundai Oilbank) and launched an on-site investigation the previous day.