Govt. Inaugurates Inter-Ministry Market Inspection Body to Tame Petroleum Prices amid Oil Market Uncertainties

CEO Cha Dong-hyung of Korea Petroleum Quality and Distribution Authority. (Photo: K-Petro)

The government is inaugurating an inter-ministry petroleum market inspection body to curb petroleum prices amid oil market uncertainties.

Amid rising crude oil market uncertainties, caused by armed conflicts between Israel and Hamas, 2nd Vice Minister Kang Kyung-sung of the Ministry of Economy and Finance (MOEF) decided to inaugurate an inter-ministry market inspection team and discussed inspection plans during a meeting with related ministry officials on Oct. 24.

Attendees of the meeting included the director-general in charge of public economy policy at MOEF, the director-general in charge of corporate taxation at the National Tax Service, direct in charge of logistics policy at the Ministry of Land, Infrastructure and Transport (MOLIT), and the director in manufacturing cartel inspection at the Fair Trade Commission (FTC).

The petroleum market inspection group is an impromptu body designed to raise the efficiency of a policy of extending a step to lower the petroleum tax and crack down on illegal practices, such as price fixing, tax evasion and circulating of fake petroleum.

The inspection body consists of a price fixing team comprising of the Ministry of Trade, Industry and Energy (MOTIE), MOEF and FTC and a circulation and quality team, comprising of officials from MOTIE, MOLIT and NTS.

2nd Vice Minister Kang Kyung-sung of the Ministry of Trade, Industry and Energy presides over a meeting of an inter-ministry petroleum market inspection body at K-sure building in Jongno-gu, Seoul, on Oct. 24. (Photo: MOTIE)

The price fixing team is examining price movements of the petroleum market and influences on prices and price fixing practices of gas stations while the distribution and quality team is cracking down on illegal practices, such as illegal receipt of oil subsidies and tax evasion.

The petroleum market inspection body is prioritizing examining into each ministry’s matters under close cooperation among ministries.

The teams plan to make rounds of inspection tour into filling stations across the nation to inspect them more than once per week.

Petroleum market report centers are operated so People are encouraged to join inspecting the petroleum markets.

Reports on price fixing practices are accepted from the call center of Korea National Oil Corp. while distribution and quality matters are handled at the call center of Korea Petroleum Quality and Distribution Authority (K-Petro).

MOEF Vice Minister Kang said, “Each ministry will mobilize its all capabilities so the effects of the government’s policy to stabilize petroleum prices can fully reach people, and the government will establish the petroleum distribution market in a fair and transparent fashion not to cause difficulties to people’s life.”

K-Petro Gangwon Headquarters Pursues Thorough Petroleum Quality Management

K-Petro Gangwon Headquarters hosted a business meeting of the petroleum industry consultative body comprising of HD Hyundai Oilbank, SK Energy, Daehan Oil Pipeline Corp. and Korea National Oil Corp. and decided to launch a crackdown on the quality of petroleum products on Oct. 19.

During the meeting, participants shared diverse information on quality management knowhow of petroleum products, ESG and safety management and discusses ways of developing the whole of the petroleum industry.

In particular, the meeting decided to introduce a “precision comparison test” designed to secure reliability.

K-Petro Launches Study on Verification of Bio Fuel for Ship

Korea Petroleum Quality and Distribution Authority (K-Petro) held an inaugural meeting to launch a study on the verification of a bio fuel for ships on Oct. 13.

The study will last until next December, K-Petro said on Oct. 16.

The study is a follow-up stem in accordance with a plan to verify a bio fuel, which was decided during the 3rd plenary session of the “Eco-friendly Bio Fuel Invigoration Alliance. The alliance was launched in December 2022.

During the plenary session, targets of the verification study and methods were discussed and experts agreed on the launch of the study.

Bio diesel and bio heavy oil are subject to verification, and they are proved to reduce greenhouse gases more than 65 percent compared to fossil fuels.