Posted November. 21, 2001 09:06,
The gas stations in the principal roads and satellite cities under the direct management of such large oil companies as SK and LG charge 10 won higher per liter than the gas stations in Seoul.
The oil companies have propagandized that they lowered the manufacturer price but have continued to charge higher prices to the customers in their directly managed stations. Those directly managed stations are suspicious of the price prearrangement since their prices are almost the same within 1-2 won variations even though their oil companies are different.
The Fair Trade Commission carried out a preparatory survey on the price pre-arrangement by the gas stations on Nov. 19, responding to the customers` complaints that the gas price still remains high even after the plunge of the international oil price.
According to the survey by the Donga`s reporters on 34 gas stations in Seocho, Seoul, and Bundang, Sungnam, under the direct management of SK and LG, 14 gas stations out of 15 gas stations under the direct management of SK charged 1,294 per liter and 14 out of 19 gas stations under the direct management of LG charged the same price 1,294 per liter. LG and SK have lowered their manufacturer price from 0:00 AM, Nov. 20th, and 0:00 AM, Nov. 21st, respectively but it is questionable whether the gas stations under the direct management will reflect the price change.
In addition, 26 gas stations under the direct management in the Kangseo-Ro, Hangang-Ro, Shiheung Express, and in Kwacheon, sold gas 1,294-1,295 won per liter.
These prices are about 30 won higher than the price of SK`s gas stations, 1,259.75, and the price of LG`s gas stations, 1,256.74, per liter that was surveyed by the Korea National Oil Corporation. And it is over 10 won higher than the average price in the Seoul area.
The oil companies have responded to the criticism that they did not reflect the international oil price to the customer price, saying "local gas stations won`t reflect the price change." However, the oil companies in fact have maintained the high price by the gas stations under the direct management.
Pre-arranged set price is suspected as well. The prices of self-managed gas stations are almost the same as the price of the gas stations under the direct management. This is suspicious.
An SK official explained, "what a coincidence! The price differences are lower in the Kangnam area since land price is very high. Other oil products such as Petroleum vary in their prices."
LG also explained that "the gas stations in the high competitive areas charge higher price due to the cost of customer appreciation gifts. The oil company cannot control the oil price since the individual gas station is managed by an independent manager."
Park Won-Seok, director of Civil Rights Bureau in People`s Solidarity For Participatory Democracy, commented that the oil companies must apologize for their double-dealing attitudes to attribute the reason of the higher oil price to the local gas stations while they were maintaining the high price by themselves.