Government Selects First 'Kind Gas Stations' to Lower Fuel Prices

An SK gas station in downtown Seoul. Photo: Yonhap News — An SK gas station in downtown Seoul. [Photo: Yonhap News]

The South Korean government has selected its first two "kind gas stations" as part of efforts to stabilize fuel prices following the Middle East conflict. On June 22, the Ministry of Trade, Industry and Energy announced the initial selection of these stations, which have been recognized by the Energy and Oil Market Monitoring Group for maintaining lower prices since the implementation of a maximum price system on March 13.
The first two stations designated as kind gas stations are Shinwha Energy Oh Happy Gas Station in Cheongju, North Chungcheong Province, and Pyeongdong Jeil Gas Station in Gwangsan-gu, Gwangju. As of now, there are a total of 418 kind gas stations across the country, selling fuel at prices approximately 20 won per liter lower than the national average for gasoline and diesel. The two newly designated kind gas stations offer gasoline at about 40 won per liter and diesel at about 44 won per liter cheaper than average prices.
The kind gas station initiative differs from the government's direct price control through the maximum price system. Instead, it encourages voluntary price reductions among gas stations by providing benefits and promotional support to those that maintain lower prices. This approach can serve as a supplementary measure to alleviate consumer price burdens even as the maximum price system is phased out or relaxed.
To promote the expansion of kind and very kind gas stations, the government plans to increase incentives. In collaboration with Hana Financial Group, it will offer a 0.1% cashback for using kind gas stations and a 0.3% cashback for very kind gas stations. Gas stations will receive approximately 2 million won for facility improvements, and discussions with other credit card companies are planned to expand these benefits.
Additionally, the Korea Oil Quality Management Institute will reduce its annual fee by 10% for kind gas stations, while very kind gas stations will be exempt from fees for one year. The government will also explore additional incentives and awards for these stations, as well as differentiate their listings on private navigation and online platforms to enhance visibility.
Minister of Trade, Industry and Energy Kim Jeong-kwan stated, "Despite the recent MOU between the U.S. and Iran, concerns about price instability remain, so cooperation from gas stations to stabilize prices is necessary. The government will continue to seek ways to support the gas station industry."

* This article has been translated by AI.