Seoul, March 13 (IANS) The antitrust regulator is looking into suspected price-rigging collusion cases involving gas stations in southern regions amid volatile energy prices stemming from ongoing turmoil in the Middle East, officials said on Friday.
Ju Biung-ghi, chairman of the Fair Trade Commission (FTC), made the remark at a meeting of a special government task force of ministers overseeing market prices the previous day, according to FTC officials, reports Yonhap news agency.
He said several gas stations in the southeastern city of Busan, North Gyeongsang Province and the southern resort island of Jeju are subject to an FTC investigation over alleged price-fixing.
Ju stressed that the FTC will impose stern penalties on business practices found to have gained unfair profits by exploiting the situation, according to the FTC.
The regulator has been conducting inspections on gas station prices nationwide after domestic fuel prices surged following air strikes by the United States and Israel on Iran late last month.
As part of efforts to ease soaring fuel prices and reduce burdens on consumers, the government introduced a fuel price cap system earlier in the day. The system sets maximum prices for petroleum products supplied by oil refiners to gas stations and distributors.
The FTC said Ju also vowed continued efforts to lower prices of everyday groceries to ease pressure on people, citing recent price cuts of bread, instant noodle and snack products by local food manufacturers.
The watchdog previously penalised flour and sugar companies over price-fixing allegations.
Meanwhile, Industry Minister Kim Jung-kwan on Friday urged oil refineries and gas stations to cooperate with the government’s fuel price cap system introduced to ease cost burdens in the wake of the Middle East crisis.
Kim made the call in a meeting with officials from South Korean oil refineries, gas stations and the Korea National Oil Corp. held on the first day of the fuel price cap system implementation, according to the Ministry of Trade, Industry and Resources.
–IANS
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