The government announced a 100 won per liter reduction in fuel prices at highway gas stations during the Chuseok holiday, prompting a strong backlash from the gas station industry.
On September 18, the Korea Gas Station Association criticized the government's decision to lower prices at 226 highway gas stations managed by the Korea Expressway Corporation from September 24 to 27, arguing that artificially lowering prices at specific stations distorts competition with regular gas stations.
The association emphasized that the recent surge in international oil prices has already increased the operational burden on gas stations. They warned that applying additional price cuts solely to highway stations could widen the price gap with regular gas stations, making fair competition difficult.
Gas stations are already struggling with reduced profit margins due to high oil prices and the implementation of a maximum price system. They are also facing rising operational costs, including credit card fees, transportation, labor, rent, and electricity. As a result, many gas stations are finding it increasingly challenging to secure even minimal operating profits, leading to closures.
The association stated, "In this context, applying a uniform price reduction of 100 won per liter only to highway gas stations effectively forces regular self-operated gas stations to close during the Chuseok holiday without any support."
They noted that the Chuseok holiday is a peak travel period, which could lead to customer loss and decreased sales for regular gas stations near highways, national roads, and urban areas. There are also concerns that a widening price gap between highway and regular gas stations could create a perception among consumers that regular stations are relatively more expensive.
The association expressed understanding of the government's intention to alleviate the burden of high fuel prices but insisted that it should not require further sacrifices from regular self-operated gas stations by artificially lowering prices at specific locations. They reiterated that if highway gas stations receive an additional 100 won price cut, it would be akin to telling regular gas stations to close during the holiday.
They urged the government to ensure that any price reduction policy does not disproportionately benefit specific gas stations but instead includes practical support measures and compensation plans that allow all gas stations to participate.
* This article has been translated by AI.
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