South Korea: First Discount Station Opens Following Long Effort
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Monday, 02 January 2012 |
The first discounted fuel service station has opened in South Korea following a long Government-led effort. The station, which is operating in Yongin on the outskirts of Seoul, is part of an ambitious scheme to drive fuel prices lower by supporting the foundation of 1,300 discount sites.
The programme has not enjoyed a smooth progress, however. While the Government planned to buy refined product in bulk at a competitive price, it was initially unable to secure suitably low bids to supply the network of stations. Eventually, GS Caltex and Hyundai Oilbank were selected as suppliers in December following two delayed auctions, though the scheme has not been able to match its target of offering fuel at a 100 won-per-litre discount. The discount between the new site and the second-cheapest outlet in the city is just 7 won.
PetrolWorld 02012012
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