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3,000 gas stations to stage one-day shutdown Thursday
Businesses to rally in protest of weekly sales report rule
By Korea HeraldPublished : June 9, 2014 - 20:39
The nation’s gas stations ― over 3,000 gas stations of them ― on Monday decided to temporarily close their business to protest the government’s move forcing them to submit weekly sales reports.
A total of 3,023 gas stations will close shop for a one-day protest on Thursday, the Korea Oil Stations Association, or KOSA.
About 8,000 other gas stations, including some 3,000 managed directly by major refineries, will not participate in the rally.
The shutdown decision comes after the government announced that it is pushing for a new rule requiring gas stations to file weekly reports on their purchases and sales of petroleum products.
The measure was aimed at addressing fraudulent sales practices involving gas stations that sell fake or mixed fuel. The move also is expected to prevent tax evasion, according to the Ministry of Trade, Industry and Energy.
The government initially demanded daily reports but toned the move down to weekly reports on fierce protest from the gas station owners.
The oil stations association, meanwhile, said at a press conference that the weekly reports would not have “any effect in stamping out the use of fake gasoline,” and that it would only place an additional burden on gas stations.
Once considered cash cows, gas stations have been suffering a downturn in the face of rising oil prices accompanied by stiff taxes.
KOSA and its members are now demanding a two-year grace period in implementing the new rule, but the ministry wants to put it into effect at the start of next month with a six-month probation period before it starts imposing fines.
The ministry quickly denounced KOSA’s decision, calling the protest illegal and warning that participants may be subject to fines of up to 100 million won ($98,328) or a prison sentence of up to three years.
“Under the law, gas station operators are required as energy suppliers to supply energy to all citizens,” it said in a statement.
“The scheduled walkout by gas stations is clearly an illegal activity that will cause serious inconvenience to the public. The government will strictly deal with any such activity according to the law,” the ministry added. It said the new reporting rule is “a necessary policy to protect our consumers from fake and illegal products.”
By Park Han-na and news reports (hnaprk@heraldcorp.com)
A total of 3,023 gas stations will close shop for a one-day protest on Thursday, the Korea Oil Stations Association, or KOSA.
About 8,000 other gas stations, including some 3,000 managed directly by major refineries, will not participate in the rally.
The shutdown decision comes after the government announced that it is pushing for a new rule requiring gas stations to file weekly reports on their purchases and sales of petroleum products.
The measure was aimed at addressing fraudulent sales practices involving gas stations that sell fake or mixed fuel. The move also is expected to prevent tax evasion, according to the Ministry of Trade, Industry and Energy.
The government initially demanded daily reports but toned the move down to weekly reports on fierce protest from the gas station owners.
The oil stations association, meanwhile, said at a press conference that the weekly reports would not have “any effect in stamping out the use of fake gasoline,” and that it would only place an additional burden on gas stations.
Once considered cash cows, gas stations have been suffering a downturn in the face of rising oil prices accompanied by stiff taxes.
KOSA and its members are now demanding a two-year grace period in implementing the new rule, but the ministry wants to put it into effect at the start of next month with a six-month probation period before it starts imposing fines.
The ministry quickly denounced KOSA’s decision, calling the protest illegal and warning that participants may be subject to fines of up to 100 million won ($98,328) or a prison sentence of up to three years.
“Under the law, gas station operators are required as energy suppliers to supply energy to all citizens,” it said in a statement.
“The scheduled walkout by gas stations is clearly an illegal activity that will cause serious inconvenience to the public. The government will strictly deal with any such activity according to the law,” the ministry added. It said the new reporting rule is “a necessary policy to protect our consumers from fake and illegal products.”
By Park Han-na and news reports (hnaprk@heraldcorp.com)
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Articles by Korea Herald
