(1) Reasons for Proposal
Recently, the number of violations by petroleum retailers including gas stations, which deviate from business methods and scopes under the Petroleum and Alternative Fuel Business Act, is on the increase. Even though there are many types of violations by petroleum retailers in business methods in the industry, the single administrative disposition standard is applied. Accordingly, 1 month of business suspension is imposed against 1 violation regardless of whether it is minor or major, for which civil petitions continue to be filed as such disposition is too severe.
In this regard, this Amendment aims to ensure predictability for violators by specifying various violations in business methods and explicitly stating violations subject to administrative disposition standards, while easing administrative disposition on violations, which have a minor impact on order in petroleum distribution, for the convenience of civil petitioners.
(2) Major Provisions
A. Specify types of violations in business methods (attached Table 1 subparagraph 2 item d 15) f) newly inserted)
1) “Other cases” is applied as the single administrative disposition standard (against violations) even though there are many types of violations by petroleum retailers in business methods.
2) Violation cases in business methods have been analyzed specifically and categorized into 8 types of violations*, and 3 violations such as storage and sales, supply agency, and designation change have been further divided into commission and consignment, which totals 11 types of violations.
3) While violators did business without knowing what they did was a violation in some cases and others took advantage of unclear applicable laws, explicitly specifying types of violations is expected to ensure predictability for violators and reduce the number of violations.
B. Reasonably improve administrative disposition standards [attached Table 1 subparagraph 2 item d 15) f)(4), (6), (8)]
1) Currently, “1 month of business suspension” is imposed as administrative disposition for all violations in business methods regardless of whether they are minor or major.
2) Three violations such as storage and sales, supply agency, and designation change have been further divided into commission and consignment, and “warning” is introduced for 1 passive and inactive violation or consignment activity, which has a minor impact on distribution order.
3) While administrative dispositions for other violations in business methods such as storage and sales are maintained, administrative disposition standards are reasonably improved for relatively disadvantaged consignees while continuously preventing violations.
