Kim Jeong-gwan, Minister of Trade, Industry and Energy, demands that South Korea’s four leading refineries shoulder major responsibility for calming public worries over unstable crude oil prices fueled by the Russia-Ukraine war.
The minister delivered this message at a key forum on central government petroleum distribution operations held at the Sejong Government Complex. Attendees included executives from SK Energy, GS Caltex, S-Oil, and HD Hyundai Oilbank, alongside major consumers, consumer unions, liquor cooperatives, and groups such as the Korea Petroleum Association, Korea Petroleum Federation, Chungjejeju, and Korea Road Corporation.
Minister’s Direct Call to Action
Kim highlighted how domestic oil retailers gained the most from a two-week spike in national fuel prices triggered by central interventions. “Meanwhile, citizens endure soaring costs and face ongoing high prices,” he stated.
He stressed transparency, saying, “The largest central government petroleum exchange must avoid one-sided benefits for oil firms. Instead, it should operate openly and reform the retail structure.”
Kim organized the forum after aligning with officials from Canada and the United States on urgent energy issues.
Ongoing Stabilization Efforts
Uncertain central government oil retail practices risk shifting burdens to the private sector, prompting the ministry to release public perception survey results around 3 p.m. on the 5th. Officials now push major countermeasures.
Focus areas include oil and gas supply chain breakdowns, imported raw material surges, overseas production dips, and exchange rate pressures. Direct sales and rate adjustments offer potential relief on price hikes.
Yet, threats like panic buying, full refining capacities, and supply gaps drive strategies to expand key stockpiles through enhanced bond financing and special tax measures.
An industry representative affirmed, “We intensify departmental reviews and targeted calculations to avert supply panics, panic purchases, refining halts, and similar disruptions.”
