Refinery Losses: Funding & Scale Questions

by Archynetys Economy Desk

[앵커]

As the supply price was set, the government announced that it would compensate for the oil refinery’s losses.

However, there are concerns that the burden on the government may increase as the funding plan and scale have not been determined.

This is reporter Ji Woong-bae’s report.

[기자]

Starting today (13th), the government implemented a maximum price system for oil supply prices from oil refineries in response to the rise in international oil prices.

[구윤철 / 경제부총리 (어제(12일)) : 정부는 위기상황을 틈탄 도를 넘는 가격인상에 단호히 대응하고, 소비자 부담을 완화하기 위해 석유제품 최고가격제를 시행합니다.]

The government plans to settle the loss through a verification process every three months if the oil refinery proves the amount of loss in consideration of the cost.

The problem is that the relevant laws only say that compensation for losses can be done, but there is no mandatory provision that says you ‘must’ compensate for losses.

In addition, the scale of conservation and the method of raising funds are also issues.

It has not been decided whether a supplementary budget will be drawn up centered on excess tax revenue or whether financial resources will be raised through a separate fund.

The Ministry of Finance and Economy, which oversees financial resources, and the Ministry of Planning and Budget, which prepares the budget, are in the position of receiving the budget size from the Ministry of Trade, Industry and Energy, the relevant ministry.

An official from the Planning Department said, “It is difficult to estimate what the expected budget will be as there are too many variables, such as the extent and period of oil price increases, oil refinery cost structures, and exchange rates.”

The position is that there is still time as there are more than three months left until the first settlement, and the process can be prolonged.

[손양훈 / 인천대 경제학과 교수 : 이게 길어지면 (재정 부담이) 굉장히 많아질 거예요. (또) 한 번 이런 보조금 제도가 생기면 잘 없어지기가 어려워요.]

Meanwhile, the Ministry of Trade, Industry and Energy plans to specify post-settlement standards and procedures soon.

This is SBS Biz Ji Woong-bae.

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