Ministry of Industry Delays Oil Import and Sales Levy for 3 Months... "Relieves 900 Billion Won Burden on Industry"

Asia Economy DB=Photo by Honam Moon munonam@

[Asia Economy Reporter Kim Bo-kyung] The government has decided to defer the collection of petroleum import and sales surcharges for three months for domestic oil refiners and others for 90 days. This is estimated to ease the payment burden by approximately 900 billion KRW.

On the 7th, the Ministry of Trade, Industry and Energy announced a plan to defer the collection of petroleum import and sales surcharges to support the petroleum industry, which is struggling due to the novel coronavirus disease (COVID-19). This support decision takes into account that operational difficulties, such as deteriorating sales in the domestic petroleum industry caused by the global decline in oil demand, are becoming more pronounced.

The government decided to defer the collection of petroleum import and sales surcharges for the April to June period for 90 days. Through this, it plans to reduce the financial burden on 54 domestic petroleum businesses. The targets include refiners, petrochemical companies, and LNG importers who import crude oil, petroleum products, and LNG.

The Ministry of Trade, Industry and Energy estimated that this will have the effect of deferring payment burdens amounting to about 900 billion KRW. It is expected to partially alleviate the temporary financial burden caused by the deterioration of the domestic petroleum industry's performance.

Additionally, Korea National Oil Corporation plans to promote the leasing of storage tanks by maximizing the use of its surplus reserve facilities to resolve the petroleum industry's shortage of storage space.

An official from the Ministry of Trade, Industry and Energy stated, "We are continuously communicating with the petroleum industry, research institutes, and private experts through the International Oil Price Response Team meetings and working-level TF between Korea National Oil Corporation and refiners," adding, "We plan to discuss necessary measures according to fluctuations in international oil prices, domestic petroleum product prices, and the business conditions of the petroleum industry."