The Korean government took another step to curb soaring oil prices by importing gasoline through state-run Korea National Oil Corp., or KNOC.

KNOC announced on Thursday that it purchased 100,000 barrels of gasoline from PetroChina, China’s largest oil company. KNOC-imported oil is expected to be distributed through the nation’s discount gas stations early next week.

It is the first time for KNOC to import gasoline through international bidding to lower oil prices. The move was anticipated by Strategy and Finance Minister Bahk Jae-wan last week at a ministry-level meeting. Like private oil refining companies, the government decided to import oil after its previous attempts to lower gasoline prices, such as the introduction of discount gas stations across the nation and the creation of an online gas trading market, had little impact on oil prices amid rising international oil prices.

“The move is aimed to diversify oil supplied to discount fuel chains. We expect rising competition to affect oil prices in a longer term,” a KNOC official said.

Currently, discount chains offer consumers a price 50 won cheaper per liter on average compared to regular gas stations. Consumers have complained that the prices are not discounted enough.

The government set up discount fuel stations earlier this year and allowed Samsung Total to enter the market as a fifth fuel suppler to weaken market domination by the country’s four oil refiners ― SK Innovation, GS Caltex, S-Oil and Hyundai Oilbank.

As of now, Hyundai Oilbank and SK Innovation in addition to Samsung Total are supplying oil to discount fuel chains. The number of discount fuel stations rose to 716 nationwide, which accounts for 5 percent of the domestic fuel market.

KNOC said it will closely monitor the impact of its oil imports on the market and increase imports later. It added that its imported oil will go through a tight quality evaluation process before distribution.

By Seo Jee-yeon (yseo@heraldcorp.com)