Korea Oil Management Institute Unifies Fuel & Gas Levy Collection & Refunds

March 22, 2026 Priya Shah – Business Editor Business

South Korea’s Ministry of Trade, Industry and Energy has consolidated the collection and refund of petroleum and gas levies under the Korea Petroleum Corporation (KPC), effective March 20, 2026, according to a statement released by the Busan Ilbo on Friday.

Previously, the KPC handled levy collection while the Korea Petroleum Management Corporation (KPMPC) managed refunds. The change, enacted through revisions to the Petroleum Business Act and the High-Pressure Gas Safety Control Act, aims to streamline administrative processes and enhance expertise in managing the substantial funds involved – approximately 3.8 trillion won (approximately $2.8 billion USD) annually, according to the Energy Daily.

The consolidated levies include the petroleum import surcharge, the petroleum sales surcharge, and the safety management surcharge. These funds are channeled into the Energy and Resource Business Special Account, supporting initiatives such as overseas resource development, strategic petroleum reserves, energy efficiency research and development, and energy welfare programs, as reported by the Energy Times.

The KPMPC will now oversee the entire process, from collection to refund, with a data-driven integrated management system intended to strengthen verification and improve the accuracy and transparency of surcharge calculations. The move is also expected to simplify procedures for businesses, reducing the refund processing time from seven days to five and requiring submission of supporting documents to a single agency, according to the Busan Ilbo.

“This integration is a significant turning point in realizing customer-centric administrative services and securing national financial soundness,” said KPMPC President Choi Chunsik in a statement released by the Energy Times. “The KPMPC will devote all its efforts to stabilizing the new system.”

The KPMPC has initiated a public awareness campaign, including website updates, newsletters, and direct communication with businesses, to minimize disruption during the transition, the Energy Times reported. The change is expected to positively impact corporate cash flow, according to an unnamed business representative quoted in the Busan Ilbo.