[신년사] Jeong-Hoon Kim/President of Korea Petroleum Distribution Association-Energy Daily

To overcome the crisis in the oil industry

As Corona 19 spread around the world, demand for oil plummeted and oil prices plummeted. Refineries’ refining margins have been negative for a long time, and exports of petroleum products have fallen by less than half. The sales volume of petroleum agencies and gas stations also plummeted by more than 20%, and due to fierce competition at low prices at affordable gas stations and future energy diffusion policies such as electricity and hydrogen vehicles, it is a reality that it is difficult for the oil distribution industry to maintain the status quo.

Even in the new year, due to the spread and normalization of the Corona 19 pendemic, the oil industry is expected to face uncertainties and crises that have not been experienced before. In particular, in a situation where fierce competition to cut oil prices due to a decrease in global oil demand is predicted, the order of the oil distribution market is expected to collapse due to the policy of expanding affordable gas stations, which has been around for 10 years domestically, and the management conditions of oil agencies and gas stations are expected to worsen.

In 2021 alone, the biggest challenge for oil companies is to survive by adapting to environmental changes such as the Corona 19 crisis and the expansion of uncertainty in the oil market to a new level.

In order to overcome these crises and uncertainties, the Korea Petroleum Distribution Association will focus its business on two directions in 2021 to reliably support member companies and oil companies.

First, it is the improvement of the business environment of the oil distribution industry. At the same time, we will focus on creating a stable business environment as much as possible by urging the government to review the policy of affordable gas stations, devising a win-win plan for the oil distribution industry, easing excessive gas station regulations and crackdowns, and expanding offshore businesses.

Second, it is a response to energy conversion. To this end, member companies are encouraged to support the national economy, including the energy industry in a new environment, through expanding support for electric vehicles and hydrogen vehicles, expanding government and local government policy support for the entire and closing of gas stations, and research and research projects to find a way for the oil distribution industry. We will support you to continue to play a pivotal role.

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