Online market transactions on imported petroleum products have rapidly increased due to the government’s tariff-lifting policy and other measures.

The Ministry of Knowledge Economy lifted the 3-percent tariff on imported petroleum goods that are traded online in July 2012, three months after launching the online trade of imported oil goods on March 30.

According to the ministry, the new tax policy boosted the average volume of daily trade of these goods by over eight-fold from April to July.

The average volume of imported petroleum goods traded was 120,000 liters in April, 155,000 liters in May, 375,000 liters in June and 3.53 million liters in July.

The Korea National Oil Corp., a state-run company that monitors the distribution of imported petroleum, currently gives a 16-won rebate for every liter if the trader submits a copy of confirmation document issued by Korea Institute of Petroleum Management.

KNOC also lowered requirements for importers of diesel. Whereas dealers of 150 million liters or more diesel were required to add a certain percentage of costly biodiesel to their product, now only those with 300 million liters or more diesel are bound to meet the condition.

The government plans to submit a bill to the National Assembly in September, demanding a larger tax deduction for online trade of imported oil products from 0.3 percent to 0.5 percent.

According to news reports, only 5.6 percent of all oil goods traded online came from the four major private oil companies ― SK Networks Co., Hyundai Oilbank Co., S-Oil Corp. and GS-Caltex Corp.

By Chung Joo-won (joowonc@heraldcorp.com)