Some South Korea Highway Gas Stations Cap Fuel Purchases Amid Supply Strain

Middle East war fallout is deepening concerns about South Korea’s supply of petroleum products, with some gas stations now limiting how much customers can buy. The restrictions follow refiners’ cuts to fuel deliveries to discount stations in cities and at highway rest stops.

Industry officials said Sunday that many EX-OIL discount stations on expressways, operated by the Korea Expressway Corp., have begun posting notices capping purchases at 30,000 won per person for gasoline and 100,000 won per person for diesel.

A government price cap introduced March 13 has pushed down the national average price at gas stations, but customers are increasingly unable to buy as much fuel as they want.

The Korea Expressway Corp. said March 12 it would work with joint-purchasing refiners such as SK Energy and GS Caltex to ensure stable supply. On the ground, however, EX-OIL stations say shortages are worsening.

An EX-OIL station official said stations had been receiving contracted joint-purchase volumes from SK Energy and GS Caltex and, when short, signed separate deals with other refiners such as HD Hyundai Oilbank and S-Oil for additional supply.

That extra supply has recently been cut off, officials said. Another station official said, “As it has become harder to secure volumes, we can’t sell as much fuel as customers want,” adding that “it’s not easy to keep operating.”

The official said one refiner that had provided additional supply sent an email notice saying it “cannot supply oil this month.”

Some in the industry say the government’s price cap may have affected the supply structure for highway stations. With profitability squeezed by price controls, refiners may have less incentive to provide volumes beyond joint-purchase contracts, reducing supply to highway stations.

If disruption tied to a blockade of the Strait of Hormuz drags on, the purchase limits now seen at some stations could spread across highway stations. Similar limits could also appear at discount stations in cities, not just those tied to major refiner brands.

Because it typically takes about a month to ship crude from the Middle East to South Korea, industry officials warned a gap could emerge in Middle Eastern crude arriving from late March or early April. As a result, consumers may be unable to buy as much gasoline and diesel as they want regardless of the price cap.

A refining industry official said refiners are struggling to secure supply even for their own branded stations and are therefore reducing volumes sold into the spot market, including to discount stations.

The Korea Expressway Corp. said it is discussing with the government and refiners ways to secure additional joint-purchase volumes to stabilize supply.



* This article has been translated by AI.

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