Home / Business and Economy / Oil Giants Face $17 Billion Collusion Charges
Oil Giants Face $17 Billion Collusion Charges
6 Jul
Summary
- Four major oil refiners indicted for fuel price collusion.
- Estimated anti-competitive harm reached $17 billion.
- Prosecutors allege managers discussed price increase timing.
South Korean prosecutors have indicted the nation's four largest oil refiners on charges of fuel price collusion. The accused companies include HD Hyundai Oilbank, SK Energy, GS Caltex, and S-Oil. This alleged price-fixing scheme is estimated to have resulted in anti-competitive harm valued at approximately 26 trillion won, equivalent to $17 billion.
Prosecutors allege that pricing managers at HD Hyundai Oilbank and SK Energy colluded on petroleum product prices soon after a conflict in Iran commenced earlier this year. Reports indicate these discussions involved the scale and timing of price increases. GS Caltex and S-Oil reportedly adopted similar pricing strategies. This action by prosecutors follows recent enhancements to penalty structures for collusion in South Korea, with the antitrust watchdog raising the minimum penalty to at least 10% of related sales.
Representatives from SK Innovation, the parent company of SK Energy, and S-Oil have declined to comment. HD Hyundai Oilbank and GS Caltex have not yet responded to requests for comment.
