SK Energy and Hyundai Oilbank won the contract to supply oil to discount gas stations across the country for one year starting next month, the state-run Korea National Oil Corp. said Monday.

The two refiners won the bid put up jointly by the KNOC and the National Agricultural Cooperative Federation (NongHyup) to select providers of gasoline, diesel and kerosene to over 1,000 discount retailers.

SK Energy, the nation’s largest refiner, won the bid for the first time, while No. 3 Hyundai Oilbank won the contract for the third consecutive year since the government introduced discount stations in 2012 to help bring down retail fuel prices and spur competition in the domestic market.

The discount stations sell gasoline at prices around 2 percent lower than typical gas stations as they receive the fuel directly from KNOC and the NongHyup. They also cut costs by doing away with complimentary gifts and auxiliary services. (Yonhap)