South Korean government will not import oil from Japan while supplies are low

Due to tight supplies in Japan, the South Korean government has decided not to import oil products from its neighbor. The Ministry of Knowledge Economy said last month that it would push through with the importation of petroleum products from Japan and other Asian countries. The ministry, which is responsible for energy, industry and commerce, said that importation was considered so that domestic fuel prices could be brought down. But low inventories in Japan have made importation of oil products difficult. Despite this setback, the ministry said it would push through with plans to set up public-run fuel stations. The move is aimed at curtailing the long-standing domination of four refiners: SK Innovation, GS Caltex, S-Oil and Hyundai Oilbank, which is considered a major factor behind increasing prices. The government plan includes the purchase of refined products in bulk from other countries by the state-run Korea National Oil Corp. Korea National would then deliver these products to the proposed alternative public-run fuel stations at lower prices. (September 8, 2011)