Lawsuit seeks return of 400 million won in settlement funds; claim amount may grow
Discount gas stations operated under Korea Expressway Corporation have filed a lawsuit against GS Caltex, alleging the oil refiner improperly collected settlement payments following the government's implementation of a petroleum price cap. The stations contend that GS Caltex failed to reflect price reductions mandated by the cap when settling supply payments in March.
The dispute has escalated into litigation as the government limited loss compensation under the price cap scheme to refiners, leaving distributors to absorb the difference on their own.
Korea Expressway Corporation's discount fuel subsidiary ex-OIL filed a suit for the return of unjust enrichment against GS Caltex on Monday, seeking to recover settlement funds tied to the petroleum price cap policy.
According to the complaint obtained from ex-OIL, the suit demands the return of 400 million won ($295,000) in settlement funds. The claim breaks down as 250 million won from five expressway corporation-operated stations, 82.48 million won from Seochang Industry — a station operator under the corporation's jurisdiction — and 50 million won from other operators. The total claim is expected to grow as the full extent of losses is established.
Ex-OIL alleged that GS Caltex used unjustified additional settlement claims to offset and withdraw funds from existing receivables held by gas station operators. "We are seeking the return of the corresponding amounts," the subsidiary said.
Ex-OIL argues the settlement process became tangled after the government introduced the petroleum price cap in mid-March. Under the standard arrangement between refiners and discount stations, payments are settled at month's end: stations pay upfront based on the refiner's listed supply price, then receive a refund or pay the difference once the monthly average of the international petroleum product price, known as MOPS, is confirmed.
Ex-OIL's position is that because GS Caltex sold petroleum at the higher pre-cap price, the discount stations are entitled to compensation for losses incurred from subsequently selling fuel at the lower capped price. GS Caltex has pushed back, saying it conducted the month-end MOPS-based settlement in accordance with the existing contract and that there was no irregularity. Korea Expressway Corporation has jointly retained a law firm with ex-OIL to pursue the litigation.
A GS Caltex official said the company had continuously engaged in settlement discussions with relevant agencies in line with contract terms regarding supply settlements for discount stations, but that no agreement was reached, leading it to proceed with settlement under the existing contract. "If a dispute process proceeds, we will engage in it faithfully," the official added.
The lawmaker surnamed Yun said the dispute amounted to a legal battle between a refiner and discount stations caused by a government policy failure. "I will do my utmost to ensure that the budget needed to resolve the settlement dispute is reflected during the review of next year's budget bill," Yun said.
klee@heraldcorp.com
