SEOUL: SK Energy will lower petrol and diesel prices slightly for three months to help government efforts to tame inflation, the largest South Korean refiner said on Sunday.
Petrol stations run by SK Energy will offer the discount of 100 won per litre (about 9 US cents) between April 7 and July 6, about 5 percent of current retail prices.
As of Sunday afternoon, South Korea's average retail prices of gasoline and diesel stood at 1,971 and 1,800 won per litre, respectively, according to the state-run Korea National Oil Corp.
"At a time when crude oil prices have been skyrocketing in the wake of instability in the Middle East ... and the national economy is suffering a greater burden, (the company) decided to cut petrol and diesel product prices which have big influences on consumer price," SK Energy said in a statement.
The refiner, owned by listed SK Innovation, also cut residential heating oil prices in February.
The announcement comes after South Korea's annual consumer inflation quickened to a 29-month high of 4.7 percent in March, with rising petrol prices lifting the transportation components' contributions to the price.
By comparison, school tuitions and school lunch fees declined from a month before with government steps to control their increases, bringing the headline inflation reading slightly below the market expectations of 4.8 percent.
Now the world's No.5 crude oil importer is targeting gasoline prices and communication fees in the next phase of efforts to rein in consumer prices.
"This price cut, which made allowances for losses, was not an easy decision at all," SK said. "This step taken is expected to revitalise the national economy suffering from higher raw material prices and give support to government efforts to stabilise prices."
The government has been pressuring domestic refiners to absorb the costs of higher oil prices and contain their profit margins to protect consumers from higher prices.
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