GS Caltex and Hyundai Oilbank have been selected as the suppliers of petroleum to discount gas stations fostered by the government, the Ministry of Knowledge Economy said Wednesday.

Nonghyup and the Korea National Oil Corp. chose the two refiners as suppliers for a year without disclosing their bidding prices, and plan to open the discount gas stations within this year.

GS Caltex, which runs refineries in Yeosu, South Jeolla Province, will supply petroleum to discount gas stations in the southeastern and southwestern parts of the country.

Hyundai Oilbank, which has refineries in Seosan, South Chungcheong Province, plans to supply to low-cost gas stations in the central region.

All four oil refiners including SK Energy and S-Oil took part in the bid.

The government plans to foster up to 700 discount gas stations next year and 1,300 by 2015, or about a tenth of all gas stations across the country.

The KNOC and Nonghyup will jointly purchase large volumes of petroleum products from the domestic refiners and sell them to Nonghyup’s 300 NH gas stations and others run by KNOC.

By Kim So-hyun (sophie@heraldcorp.com)