Gasoline Prices Top 2,000 Won, Reigniting Card Fee Dispute

Amidst regional instability in the Middle East, the national average gasoline price has surpassed 2,000 won per liter, with some areas already seeing prices above this threshold, intensifying the burden on consumers. In this high-price environment, the conflict between gas station operators and card companies over transaction fees is flaring up again, with a deepening disagreement over who should bear the economic strain of elevated oil prices.

Gas station operators argue that as oil prices rise, the value of card transactions increases proportionally, leading to a steep rise in their fee burden. They are demanding a reduction in card transaction fees, proposing that the current rate of approximately 1.5% of sales revenue be lowered to 0.8-1.2% specifically during periods of high oil prices. Gas stations bear card fees based on their total sales, which include oil and value-added taxes. Given the industry's typically thin profit margins, the current fee burden is considered disproportionately high relative to actual operating profits.

Conversely, card companies contend that the gas station sector already benefits from preferential treatment, with a transaction fee rate of 1.5%, which is lower than the average for general merchants (around 2.08%). Card companies stated that while gas station card sales increased by approximately 530 billion won in the past month compared to January, their fee revenue only amounted to about 8 billion won. The estimated increase in costs reached around 11.2 billion won, resulting in an additional loss exceeding 3 billion won. Further reductions, they explain, could lead to a deterioration of profitability across the entire industry.

Financial authorities have indicated that applying an additional fee reduction solely to the gas station sector would be difficult. They are considering the potential for such a move to prompt similar demands from other industries and the risk of increased costs for end consumers if card companies' benefits are reduced.