The Korean government decided on May 8 to ease the mandatory inventory management regulations for domestic oil importers to help importers release more fuel to the domestic market and weaken the control of domestic refiners. The four major Korean oil refiners, SK Innovation, GS Caltex, S-Oil and Hyundai Oilbank, have signed supply agreements with South Korea's 13,000 petrol stations to control the domestic market.
As of now, South Korean refined oil importers still need to maintain the equivalent of 30 days of daily storage, and ensure that the inventory of refined oil in storage facilities is at least 7.5 billion liters. However, the government has decided to relax this mandatory management regulation and reduce the inventory of refined oil in storage facilities to 5 billion liters. This measure has been approved at the cabinet meeting. An official from the Ministry of Knowledge Economy in South Korea stated: "Relaxing management regulations will promote oil imports and increase competition among oil suppliers, ultimately leading to a drop in fuel retail prices."
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