Korea’s bourse operator said Friday it plans to open a spot oil electronic trading system in a bid to bolster the local transaction market and help stabilize energy prices.

The trading system will begin preliminary operations in late March after test runs are conducted next month, with oil refiners and exporters expected to be the main sellers, according to the Korea Exchange.

Franchise dealers and gas station owners will take part as buyers through the trading system. Any entrepreneur in the oil sector can join the trading regardless of their nationality, although individuals and brokerages are to be excluded from buying and selling, the KRX said.

The KRX expected the spot price will be 10 won (U.S. $0.01) cheaper than existing buying and selling arrangements, with the providers mainly selling gasoline and diesel from 10 a.m. to 4 p.m.

The basic trading unit has been set at 20,000 liters.

In a bid to boost the spot trading, the government will impose a 0.3 percent tax deduction for the providers.

The KRX expected four or five refiners and exporters and around 50 franchise dealers to participate in the new spot trading system.

About one third of a total of 12,000 gas stations nationwide may join.

Since the buyers will be offered cheaper oil products, it will likely bring down retail prices, the KRX said.

The bourse operator, meanwhile, is also considering opening a oil futures market within the year. 

(Yonhap News)