SK Energy, HD Hyundai Oilbank Face Regulator Over Price Collusion Amid Oil Price Surge

Two refiners have come under investigation on suspicion of secretly fixing prices at a time when fuel prices were climbing by the day. The Fair Trade Commission has referred SK Energy and HD Hyundai Oilbank to adjudication proceedings on charges of collusion — coordinating prices instead of competing.

The average price of gasoline at gas stations nationwide, which stood at around 1,600 won per liter in late February when the Middle East war broke out, rose about 11% in just one week, with some stations charging more than 2,000 won per liter. Wholesale prices that refiners charge gas stations jumped first. Retail prices rose even more steeply than international oil prices, even though refiners were selling fuel refined from crude purchased before the war.

The FTC's investigation found indications that the two companies had been exchanging price-related information, including discount policies, since around February 2022. From 2024 onward, they even designated staff dedicated to price matters. The FTC determined that the two companies agreed on prices on two occasions after the outbreak of the Middle East conflict. FTC Cartel Bureau Director Oh Haeng-rok explained that the sharp swings in international oil prices amid the war may have triggered the start of the information exchanges.

The FTC's examiners estimated the two companies' relevant combined revenue at 44 trillion won. Under the law, surcharges of up to 20% of that revenue can be imposed.

In response, the refiners said they are reviewing the FTC's examination report, but maintained that the information exchanged was already public in the market. They also asserted that they never colluded on prices.

Whether and how severely the two companies will be sanctioned will be finalized after deliberation by the FTC's full commission.