The government is stepping up pressure on local refiners to lower fuel prices as it recently demanded they disclose their supply prices to individual gas stations.
Industry sources said Wednesday that the Ministry of Knowledge Economy has been analyzing the accounting records of some 180 gas stations in Seoul since last month.
The ministry, citing the necessity to crosscheck the data, also asked refiners to submit their supply prices, the sources said.
Under pressure from the government, local refiners lowered the pump price of motor fuel by 100 won (9 cents) in the three months leading to July.
With the end of fuel discounts last month, fuel prices soared again and the ministry launched the investigation into potential unfair business practices within the industry.
“Why do we have to disclose our trade secrets to the ministry? This is unprecedented,” said an official at a local refiner.
Another official complained that “if this sensitive data is leaked outside the company, it would seriously affect our business activities.”
The ministry, however, fought back against the resistance, claiming that the price disclosure was made in full compliance with law.
“Under a related law, the government is allowed to demand that kind of data from refiners and the data can be made public unless it is revised to affect their business,” said a ministry official.
Industry sources predicted that the relationship between the ministry and local refiners could further sour in coming months.
In late July, Minister Choi Joong-kyung disturbed refiners by hinting that the government could establish “alternative gas stations” or state-run gas stations that sell gasoline at lower prices.
Even though industry watchers criticized the proposal as unrealistic, the growth of fuel prices has eased slightly this week.
According to Opinet, the website run by state-run Korean national Oil Corporation, domestic retail oil price on Tuesday decreased for two consecutive days to 1,952.93 won per liter, down 1.2 won from Monday.
