At least 83 gas stations across the country have effectively suspended operations over the past two weeks, as prolonged government controls on wholesale fuel prices drive less-competitive operators to abandon business.
According to Opinet, the fuel price information system run by Korea National Oil Corp., 83 gas stations that had been operating normally before the outbreak of the US-Iran war failed to post prices on Opinet for the entire past two weeks as of Tuesday. Since Opinet tallies station-level prices automatically from consumer card payments even without direct input from owners, the absence of a price posting effectively indicates a shutdown. Including stations closed on specific days or for brief periods, a total of 113 gas stations were not open for business as of the 23rd.
The rise in long-term closures appears to stem from the prolonged maximum price ceiling system. On March 12, just before the system took effect, 46 stations did not post prices. By the 10th of this month, the fourth week of the price cap, 98 stations had stopped posting. The figure gradually rose, reaching 152 on the 19th.
"With price controls in place, consumers are flocking to directly operated stations that can set relatively lower retail prices," an industry official said. "Stations that took in inventory just before the price cap took effect, saddling them with high costs, or that have aging facilities are particularly vulnerable to financial strain." Industry figures say closing a station requires an additional 1 billion to 2 billion won or more in costs, leaving suspension as the only viable option.
Analysts note that stations in remote, sparsely populated areas are bearing the brunt of the damage. More than 70 percent of the 83 stations effectively in long-term shutdown are located in rural townships and villages. Meanwhile, the average domestic retail price of diesel topped 2,000 won per liter on Tuesday for the first time in three years and nine months.
"Please, just let us close": The cry of gas station owners taking on debt to buy fuel ⛽️ (85 stations in distress)