Illicit Oil Distribution: A Growing Concern in South Korea

More than 200 gas stations are caught distributing fake oil and other illicit products every year, causing damage to vehicles and the environment.

According to data from the National Assembly inspection, a total of 1,154 gas stations have been held accountable for distributing illicit products in the past five years, including the sale of fake oil, insufficient quality, kerosene, and under-quantity sales.

Breaking down the numbers by year, there were 273 cases in 2020, 319 in 2021, 280 in 2022, and 223 in 2023. This year, 49 cases were found in the first half.

Quality non-conformity was the most common offense, accounting for 58% of the total. Selling fake oil by mixing kerosene with diesel accounted for 25%, while selling less than the specified amount of oil and selling kerosene as automobile fuel accounted for 9% and 7%, respectively.

SK Energy Gas Stations Most Frequently Caught

SK Energy gas stations were the most detected with 445 cases (39%) over the past five years, followed by Hyundai Oilbank with 205 cases (18%), S-Oil with 196 cases (17%), and GS Caltex with 177 cases (15%).

76 economy gas stations (7%) and 55 unbranded gas stations (5%) were also caught.

Consequences of Illicit Distribution

When illicit distribution is discovered, the Korea Petroleum Quality and Distribution Authority suspends business or imposes fines for a period of up to 6 months in accordance with the Petroleum Business Act.

Aggravated punishment is imposed according to the number of offenses, including suspension of business for 3 months for 1 offense, 6 months for 2 offenses, and administrative measures such as cancellation of registration or closure of business for 3 offenses.

Call to Action

Representative Kim Won-i emphasized the need for oil refineries to take responsibility for their actions, stating that the damage caused by fake oil is passed on to the public.

The Korea Petroleum Quality and Distribution Authority is making efforts to eliminate illicit distribution, and it is essential for consumers to be aware of the issue and take action to protect themselves.