South Korea’s major oil refiners are embroiled in a scandal as prosecutors have indicted them for fuel price collusion, a case that reportedly inflicted $17 billion worth of anti-competitive harm. The implicated companies include HD Hyundai Oilbank, SK Energy, GS Caltex, and S-Oil, according to Yonhap News Agency.
These allegations stem from communications between pricing managers at HD Hyundai Oilbank and SK Energy, who are accused of conspiring on petroleum product prices following this year’s conflict in Iran. GS Caltex and S-Oil reportedly followed suit, further exacerbating the market impact, the agency reported.
The issue has prompted the Korea Fair Trade Commission to raise penalties significantly for price-fixing violations. The response from the companies has been minimal, with some opting not to comment on the charges. Meanwhile, the Korean prosecution’s indictment highlights the growing scrutiny and regulatory enforcement within the energy sector.
(With inputs from agencies.)