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21 caught selling bogus fuel

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By Yi Whan-woo

Police have apprehended 21 people for manufacturing and selling gasoline mixed with an illegal additive worth 1 trillion won ($938 million), the largest-ever amount recorded of such a product.

Suseo Police Station in Seoul said Tuesday that a 39-year-old surnamed Suh, produced, distributed, and sold 320 million liters of the gasoline-based product with 20 accomplices across the country.

Each of the suspects played a different part in group founded by Suh, according to a joint investigation with the Korea Institute of Petroleum Management.

Police and the institute conducted the probe amid concerns over distribution of illegal gasoline products due to high oil prices, an investigator said.

“Similar cases occurred in the past whenever oil prices rose, and we began our investigation since May to protect consumers from purchasing illegal products in order to save money.”

Among the suspects who worked as sellers, they sold the product on remote trails on mountain roads, deserted industrial plants and on highways to owners of gas stations. They also sold it to paint stores and street vendors.

Police also found 100,000 liters of the gasoline product at a plant in Seoul. Investigators confiscated mobile phones that facilitated a nationwide network that moved and sold the product. Police said the 21 are not members of organized crime rings but found that they are apparently supported by organized crime.

“We’re making a further probe to find out whether there are more people involved,” an officer said. “A number of consumers are tempted to buy such illegal products because they are sold at prices that are about 30 percent lower compared to the genuine ones,” an investigator said.

“But these illegal products can cause serious car accidents due to explosions, and we ask consumers to be prudent when purchasing gas for their vehicles,” he added.

The government outlaws the manufacturing, distribution, storage and sale of such fuel. But some gas stations have defied the ban in an illegal attempt to make money when fuel prices remain high due to high crude oil prices.

In September 2011, four people were killed in explosions at two gas stations selling the product in Suwon and Hawseong, both in Gyeonggi Province.

The government declared an all-out war on the illicit fuel in order to ensure safety but has failed to root out related crimes.

Police said the penalties for the crimes have little effect when measured against potential revenue from trade in the gasoline-based products.

“The benefit the illegal manufacturers and sellers can reap is huge compared to the type of punishments issued, and I personally think we need severe penalties to win the war against illegal trade in such fuels,” an officer said.