The entry of Samsung Total Petrochemicals into the country’s retail petrol market is stirring up mixed responses, according to industry sources on Friday.

Although some say it will have limited impact in the industry in the short term, it is expected to facilitate Samsung’s entry into the nation’s tightly-controlled petroleum market, currently dominated by four big industrial names ― SK, GS, Hyundai and S-Oil, the sources said.

“The level of impact will be insignificant at first because of its small production capacity, however, it is definitely a threat to the four refineries due to the heightening competition,” said a source who wished to remain anonymous.

On Thursday, a state taskforce led by the Ministry of Knowledge Economy released a package to calm the sky-rocketing gasoline prices, naming Samsung Total as the fifth operator of what are called “discount” gas stations.

Samsung Total, a joint venture established in 2003 between Samsung and France’s oil and gas giant Total, will supply gasoline to the state-run Korea National Oil Corp. beginning in June for distribution to discount gas stations.

“We’re currently in the process of negotiating the amount, price and other conditions,” Samsung Total said in a statement. “Samsung Total is not planning on supplying petroleum by its own or entering the local refinery business. We will provide the gasoline blending component to the state agency for them to deliver it to the local discount gas stations,” the company said.

With the decision in place, the stock price of most listed local refiners headed downhill a day after the government’s announcement.

SK Innovation closed at 166,000 won per share on Friday, a decrease of 0.6 percent from Thursday, while GS closed at 64,900 won per share, down 1.96 percent from Thursday’s close.

S-Oil, however, closed at 103,500 won per share on Friday, the same figure seen at the previous day’s market close.

By Cho Ji-hyun (sharon@heraldcorp.com)