This photo, taken Oct. 17, 2021, shows a gas price sign at a filling station in Seoul. (Yonhap)
SEOUL, April 26 (Korea Bizwire) — Despite the government’s fuel tax cut in the midst of sky-high oil prices, it has offered only limited benefits to consumers while oil refiners and gas stations enjoyed huge benefits, a lawmaker said Monday.
Yong Hye-in, a lawmaker of the Basic Income Party, claimed that the government slashed fuel tax for gasoline by 164 won per liter in November last year but the consumer price slid only by 67.6 won until March.
The consumer price for diesel also declined by 55 won despite the government’s 116 won cut per liter.
According to an analysis of data from Opinet, a crude oil price provider run by the state-run Korea National Oil Corp., the fuel tax cut increased the gasoline margin of oil refiners by 23.9 won on average and 40.1 won for gas stations.
When it comes to diesel, oil refiners and gas stations saw their per-liter margins increase by 18.6 won and 24.4 won, respectively.
The combined operating profits of the nation’s four major oil refiners exceeded 7.2 trillion won (US$5.77 billion) last year, including more than 2 trillion won in the fourth quarter of last year when the fuel tax cut was implemented.
“Following the fuel tax cut, oil refiners responded by levying higher margins. Another important factor to consider is the market situation where oil demand remains unabated,” Yong said.
Kevin Lee (kevinlee@koreabizwire.com)
