Finance ministry criticizes refiners for hiking oil prices

South Korean Vice Minister Yim Jong-yong urged domestic refiners to manage their price setting policy in a reasonable and transparent way. Yim was referring to the price hikes announced by local refiners after the temporary price reduction ended. In April, major refiners GS Caltex, S-Oil Corp., SK Innovation Co. and Hyundai Oilbank Co. cooperated with the government’s call for lowering gasoline and diesel fuel prices. The voluntary price reduction has expired and the oil refineries have since raised their prices. Yim said that prices rose to a “very high” level. “Considering such price determining factors as crude prices, exchange rates, profit margins of refineries and gas stations, it is very doubtful whether there are any reasons to hike oil prices at this moment compared with the pre discount period.” South Korea has been dealing with high inflation and increasing prices for both food and fuel. (July 15, 2011)