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Highway Gas More Expensive Per Liter

Posted May. 26, 2006 03:02,   


Gas stations located on highways nationwide have a higher price rate than other stations, and the pricing difference is on the increase.

On average, the fuel price at gas stations located on highways for January to March of this year was 40.64 won per liter (56.67 won for diesel gas) more expensive than other stations.

The results have been generated by the CAR method on the pricing range of 136 gas stations located on highways nationwide as submitted to GNP representative Kim Tae-hwan on May 25 at the Construction and Transportation Committee in the National Assembly by the Korea Highway Corporation.

According to the Korea Highway Corporation, the average fuel price on the highway from January to March of this year was 1,511.53 won per liter, while other stations averaged 1,470.89 won per liter.

The price difference per liter has increased from 29.12 won in 2004, 34.54 won in 2005, and 40.64 won in 2006.

Diesel gas and LPGs are following the same trend.

Pricing differences in diesel gas inched upwards from 39.32 won per liter in 2004, 41.71 won in 2005, to 56.67 won in 2006. LPG pricing differences were also 2.96 won last year, but increased to 7.42 won this year.

136 highway gas stations sold 122,370,000 liters from January to March, and by multiplying the price difference, it was found that they earned approximately 6,036,430,000 won compared to other gas stations.

In addition, most highway gas stations obtained gas at factory prices or a cheaper rate than what intermediary agents sell to other gas stations, yet are selling gas at a higher price.

During this January to March, highway gas stations purchased gas at an average of 1,362.11 won per liter. This is 31 won cheaper than factory prices after tax, at 1,393.63 won, and 24 won cheaper than the agent price of 1,386.48 won.

Even highway gas station prices ranged drastically in pricing.

The cheapest was the Baekyangsa gas station located on the Honam Highway (1,483.99 won per liter), while the most expensive was the Pyeongchang gas station on the Yeongdong Highway (1,599.84 won per liter), amounting to a difference of 116 won per liter.

Even northbound and southbound gas stations on the same highway and region were different.

At the Cheonan gas station on the Gyeongbu Highway, gas at the northbound gas station averaged 1,505.03 won per liter, while southbound gas was 1,513.73 won, reflecting a difference of about eight won.

The Korea Highway Corporation, which is in charge of maintaining the highway gas stations, stated “According to internal surveys, most dissatisfaction on highway gas stations centered on the high oil prices, and as a result we are attempting to call for lower pricing by lining with the Highway Facilities Association.”

Seung-Heon Lee ddr@donga.com