 |
| Oil filling Machine |
South Korean prosecutors have opened an investigation into the manipulation of oil product prices following reports of unjustified increases in fuel prices amid the Strait of Hormuz crisis.
The investigation, led by the Seoul Central District Prosecutors’ Office, resulted in formal charges being filed on Monday against four major oil refining companies: HD Hyundai Oilbank, SK Energy, GS Caltex, and S-Oil, for violating the Fair Trade Act through collective collusion to raise prices.
According to the investigation results, it was established that HD Hyundai Oilbank and SK Energy colluded directly regarding the timing and magnitude of the increases, with a total value of 14.2 trillion won, while the other two companies kept pace with these fake increases, resulting in a price hike in the local market with a total value estimated at 26 trillion won (about 17 billion US dollars).
The investigations also revealed that these companies had stockpiled large quantities of crude oil before the war, but then imposed significant price increases without economic justification, exploiting the international crisis to maximize their profits. The accusations also included a number of company officials, most notably those responsible for pricing.
The prosecution concluded its statement by emphasizing that these practices were not merely temporary deviations, but rather chronic monopolistic behaviors practiced under the cover of international crises, which necessitates taking strict measures to protect fair competition and consumers.
