The Democratic Party of Korea Euljiro Committee, the government, and the refining industry on the 9th signed a win-win agreement to improve the transaction structure between gas stations and the refining industry. Through this agreement, the long-criticized post-settlement system was abolished, and the exclusive transaction structure was eased to allow mixed transactions above a certain ratio.
The items agreed to at the win-win agreement ceremony are as follows: ▲ conversion of 60% or more of total-purchase contracts to mixed contracts ▲ abolition of the post-settlement system ▲ prior confirmation and disclosure of daily sales reference prices by refiners ▲ cooperation for gas station purchase payments by credit card.
Han Byung-do, floor leader of the Democratic Party of Korea who took part in the win-win agreement ceremony, said, "This is an occasion to resolve long-standing tasks such as the problem of the post-settlement system that has been repeatedly raised in the energy distribution process," adding, "It is meaningful progress to improve the structural problems that emerged whenever oil prices surged." He continued, "In a livelihood crisis where the price of gasoline in Seoul is hovering above 2,000 won per liter, this agreement carries even greater significance," and emphasized, "Introducing mixed sales and improving the price disclosure system will lead to stable consumer prices."
Democratic Party of Korea lawmaker Jeong Jin-uk also explained the course of the agreement, saying, "The gas station market has been operated in the form of exclusive contracts within an effectively monopolistic structure centered on four refiners, which has limited choice." He added, "By introducing mixed transactions, daily price disclosure, and abolishing the post-settlement system, we agreed to increase transaction transparency and competition, which will serve as the foundation for stabilizing consumer prices and improving market order."
Gas stations and the refining industry also agreed with the purpose of the agreement and pledged cooperation. The Gas Station Association said, "This is the first step to easing the public's burden during periods of sharp oil price increases," adding, "We will responsibly implement price stabilization on the ground," while the refining industry also said, "We will continue a sustainable cooperative relationship even after the win-win agreement."
The Korea Fair Trade Commission and the Financial Services Commission also attended the win-win agreement that day and cooperated on institutional improvements to establish fair transaction practices between the refining industry and gas stations. Ju Biung-ghi, chair of the Korea Fair Trade Commission, said, "If facts that can be seen as unfair transaction practices are confirmed, we plan to consider measures," adding, "Since 2020, the FTC will reflect in the standard transaction contracts for the petroleum distribution industry the improvements derived from discussions by the social dialogue body."