South Korea FTC moves to fine SK Energy, HD Hyundai Oilbank over alleged price collusion

· Lubricants & Chemicals · South Korea

South Korea's Fair Trade Commission has begun sanction proceedings against refiners SK Energy and HD Hyundai Oilbank over alleged price collusion, according to the commission. The FTC accuses the two companies of exchanging information on gasoline, diesel and kerosene prices over a four-year period, and of reaching agreement on prices twice in March. The case targets the pricing conduct of two of the country's largest petroleum product suppliers in the transport fuels market. If the proceedings result in fines, they would mark a significant antitrust action against refiners in South Korea, where fuel prices are a politically sensitive issue. The outcome could set expectations for how the regulator treats information-sharing among competing fuel suppliers going forward.

Why it matters：Antitrust action against two major refiners over fuel price information sharing signals tighter scrutiny of pricing conduct in petroleum product markets, affecting refiners, marketers and fuel buyers across the region.

Key points

  • The FTC alleges the two refiners exchanged gasoline, diesel and kerosene price information for four years.
  • The commission says the companies agreed on prices twice in March.
  • Sanction proceedings have begun, exposing both refiners to potential fines.

Sources (original reporting)

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