The Democratic Party of Korea's Euljiro Committee pressed for an overhaul of overall transaction practices between gas stations and refiners, leading the industry to agree to ease the post-settlement system and improve the exclusive transaction system.
The Democratic Party's Euljiro Committee and gas stations and the refining industry held a meeting at the National Assembly on the 1st and coordinated views on key issues. Lawmaker Jeong Jin-uk met with reporters right after the meeting and said, "Refiners said they could even accept abolishing the post-settlement system," adding, "An agreement was reached on the method proposed by gas stations to settle a week later."
They also plan to push measures to ease the exclusive transaction system between gas stations and refiners and allow mixed transactions. Jeong said, "There was agreement on allowing mixed transactions," adding, "Discussions are underway at the current 50% level." Lawmaker Kim Nam-geun said, "Refiners' products are strictly managed for quality through laws and regulations, so even with mixed sales, quality issues are not significant," adding, "However, we are reviewing a plan to clearly indicate to consumers whether products are mixed."
The Euljiro Committee is also pressing to shorten the term of exclusive contracts. Jeong said, "Under the current structure, when a gas station opens, refiners provide support such as facilities, and accordingly, an exclusive contract is typically signed for five years and then renewed annually," adding, "Reflecting industry concerns that a five-year contract term is excessive, we are pushing to shorten it to three years."
Jeong added, "If the contract term is reduced, the initial investment scale of refiners may also be adjusted, but that part will be determined by market principles."
However, the issue of card payments between gas stations and refiners was left as a long-term task. Jeong said, "If the card fee rate is around 2% on transactions totaling 50 trillion won, about 1 trillion won in expense would be incurred, which could be a heavy burden on refiners," adding, "We cannot force this through." Even so, Kim said, "Forcing cash payments without incentives by using a superior position could constitute an unfair transaction," adding, "We will gradually improve this, including ways to provide incentives going forward."
Regarding this restructuring of the transaction framework, Jeong said, "To put it somewhat strongly, it is a revolutionary change, a process to restore free competition in the market and move toward a more normal market structure," adding, "It is highly likely to lead to lower consumer prices, and it will also serve as an opportunity for fair transactions by freeing gas stations from unilateral transaction terms."
The Democratic Party's Euljiro Committee plans to hold a third meeting on the 8th to further coordinate detailed issues between gas stations and the refining industry, and then pursue a signing ceremony based on the agreement, with the party's floor leadership in attendance.