“Oil tax cut benefits are taken by refiners and gas stations, not consumers”
Refinery “Accepting losses and reflecting cuts” Gas stations “Due to rising SG&A expenses”
Criticism has been raised that the benefits of reducing oil prices for consumers are insignificant compared to the government’s oil tax cuts. Margin increases at refineries and gas stations were cited as the cause, but the industry said that it was unfair.
According to analysis data distributed by Rep. Yong Hye-in of the Basic Income Party on the 25th, the government cut the fuel tax by 20% in November last year, reducing the tax on gasoline by 164 won per liter, but until March, the average consumer price was 68 Only one fell. During the same period, the diesel fuel tax fell by 116 won per liter, but the consumer price fell by 55 won on average.
Rep. Yong pointed to the increase in the margins of refineries and gas stations as the cause of this gap. Rep. Yong asserts that the margin of refiners per liter of gasoline from November of last year to last March increased by 23.9 won on average compared to the same period before the fuel tax cut, and that gas station margins increased by 40.1 won, respectively. Based on the same criteria, it was analyzed that the margin of refiners per liter increased by 18.6 won and gas station margin by 24.4 won per liter, respectively.
The four oil refineries (GS Caltex, SK Innovation, S-Oil, and Hyundai Oilbank) are estimated to have achieved an operating profit of KRW 2 trillion in the fourth quarter of last year, and the dominant outlook is that their performance in the first quarter of this year will also record an all-time high. Rep. Yong points out that this was possible because refiners set higher margins than before during the fuel tax cut.
On the other hand, the Korea Petroleum Association, to which the four refineries belong, explained that they immediately lowered prices at gas stations and storage stations under direct management of the oil tax cut. Even though there was a lot of inventory that was not covered by the reduced fuel tax, they took a loss and lowered the price.
The Korea Petroleum Association also announced that “refiners will make an effort to quickly reflect the additional fuel tax cuts in May,” he said.
The Korea Gas Station Association replied that at the time of the fuel tax cut, it had no choice but to raise the selling price as it was a time when oil prices were rising. It is an explanation that the price has been raised because sales and management costs such as card fees, transportation costs, and freight drivers’ labor costs have risen in proportion to the price of oil.
Self-owned gas stations also announced that they would make an active effort to lower consumer prices if the government cuts the fuel tax by 30% on May 1.
Earlier this month, the Korea Gas Station Association and the Korea Petroleum Distribution Association, which are gas station groups, issued a joint press release saying, “We agree with the government’s intention to further reduce the fuel tax, and actively seek to ensure that the reduction in supply prices from refiners is reflected in the sales prices of agencies and gas stations as quickly as possible. We will cooperate with
