KNOC will supply cheaper petrol products to South Korea’s retail pump stations

State-run Korea National Oil Corporation (KNOC) said it is prepared to supply retail pump stations with petroleum products at lower prices so that it could break the control of Korea’s top four refiners. KNOC said it can effectively lower retail prices in the domestic market by 5% and break the oligopoly structure in the country’s oil market, which is considered as the main reason behind high oil retail prices. The four companies that dominate the oil market are SK Innovation, GS Caltex, S-Oil and Hyundai Oilbank. They supply petroleum products to 13,000 retail pump stations, and about 25% are owned by them. The 440 stations that are not tied up to a single refiner can receive oil products from KNOC. The South Korean government will set up public-run fuel stations which would receive petroleum products from KNOC. This is part of the government’s efforts in restructuring the oil distribution system in the country. (September 22, 2011)