By Kim Tae-gyu
GS Caltex and Hyundai Oilbank have been chosen to provide petroleum to alternative gas stations next year, which will sell fuel at substantially lower prices compared to ordinary outlets.
The Ministry of Knowledge Economy (MKE) said Wednesday that Nonghyup and partners of the farmers’ bank picked the two refiners so as to offer fuel at cheaper prices.
Nonghyup, otherwise known as the National Agricultural Cooperative Federation, is set to enter into a contract with the two companies this week but details of the deal were not disclosed.
``The first low-priced gas station is to debut in Yongin, Gyeonggi Province later this month and others will follow suit across the country in the near future,’’ an MKE official said.
``GS Caltex and Hyundai Oilbank will supply petroleum at lower prices than today’s market norms based on bulk discounts. Our goal is to cut prices by up to 5 percent in 2012.’’
To further reduce costs, the new-style filling stations will employ a self-service format; drivers will have to pump fuel on their own instead of having workers fill the tank.
In addition, the fresh outlets will not give out presents such as tissues or bottled water unlike existing players.
MKE is striving to open 700 cheap service stations next year with the aim of more than doubling the figure by 2015.
``Nonghyup and Korea Expressway Corp. will operate hundreds of the alternative gas stations in 2012 along with outlets run by individuals through brisk expansion,’’ the MKE official said.
``The figure is expected to reach 1,300 by 2015, which amounts to some 10 percent of the overall number of petroleum stations.’’
GS Caltex, the country’s second-largest refiner, will provide fuel to filling stations located in the southern parts of the nation while No. 4 player Hyundai Oilbank will service central areas.
The contract period is one year and the two sides can extend it.
All of the country’s four refiners took part in the seemingly-lucrative auction, but business bellwether SK Energy and No. 3 firm S-Oil failed to win.
The government has pulled out all the stops to curb high-rising fuel prices, caused by the rapid appreciation of crude oil as the country depends almost 100 percent on imports for petroleum consumption.
The low-priced gas stations are one of the administration’s major policies geared toward containing the rise of fuel prices.