Four major refiners, slammed over high oil prices at National Assembly audit… “We sincerely apologize”

The four major domestic refiners—SK Energy, GS Caltex, S-Oil, and HD Hyundai Oilbank—apologized during the National Audit for the burden on citizens caused by high oil prices and regarding transaction practices at gas stations.

At the the 12th National Audit of the Fair Trade Commission by the Political Affairs Committee of the National Assembly, amid a sharp spike in fuel prices due to the Middle East war, inappropriate remarks within refiners and unreasonable transaction practices (such as full-volume purchase contracts and post-settlement) became the focus of criticism.

Kim Jong-hwa, CEO of SK Energy, stated, “Regarding the issues with full-volume purchase contracts, we will do our utmost to identify and improve them,” while Song Myeong-jun of HD HyundaiOh Il-baeng-keu (CEO) said, “We sincerely apologize for the burden that citizens must have felt during the period of surging oil prices.”

Kim Chang-soo, Vice President of GS Caltex, drew a line against suspicions of price collusion while promising to improve transaction practices with gas stations. Vice President Kim stated, “Through investigations by the Korea Fair Trade Commission and probes by the Prosecution Service, it has been confirmed that there was no price collusion by GS Caltex.” He added, “However, areas requiring institutional improvement in transactions with gas stations are currently being revised based on the standard dealership contract announced by the Korea Fair Trade Commission. We will improve and implement these changes promptly.”

Lee Geon-myeong, Vice President of S-Oil, remarked, “We sincerely apologize for the significant burden placed on citizens due to oil price pressures following the Hormuz situation.”

The fact that refiner executives successively stated their positions on this day came after Democratic Party of Korea lawmaker Min Byung-deok intensely criticized the refiners’ pricing structure and gas station transaction practices. Min (Rep.) disclosed internal conversations among some refiner employees, stating, “Inside the refiners, remarks such as ‘Sure enough, a company that makes a living off war,’ ‘Long live Trump,’ and ‘We’re raising prices by another 100 won today’ were made.” He pointed out, “While citizens face burdens on their cost of living and the nation faces an economic crisis, the four major refiners have used the war as an opportunity to make money.”

Additionally, Min (Rep.) raised issues with the transaction structure between refiners and gas stations. He stated, “Due to full-volume purchase contracts in the transaction structure between refiners and gas stations, gas stations cannot purchase from other cheaper refiners,” explaining, “There is also an issue where sales are made without knowing the price due to post-settlement.” He added, “It has been half a year since agreements were signed for expanding mixed purchases and improving post-settlement practices; the Korea Fair Trade Commission must definitely verify whether these agreements are being properly upheld.”

In response, Gong Jeong-geo-rae (Chairman) Joo Byung-gi replied, “We will verify and report back.”