• Environmental and Resource Economics Review
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• v.11 no.3
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• pp.493-513
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• 2002

This empirical study analyzed the policy effect of deregulation in oil product prices. To investigate the effect of deregulation, it is tested whether gasoline prices are determined by market power. Also, the role of government in gasoline tax system is investigated. The empirical analysis has been done by using error correction model. The major findings are as follows. First of all, no significant empirical evidence is found to support that the deregulation affects the determination of gasoline prices. Secondly, the short-term CIF elasticity is estimated to be 0.14. This finding implies that if CIF increases 10%, the gasoline prices increase 1.4%. Finally, the investigation on government role in deregulated market shows that the government has still exercise the power of control through the tax system. For example, the government is seemed to increase the gasoline price more than the increase amount caused by the international oil prices and the exchange rates, because of the intention to achieve the internal revenue increases and lead to gasoline conservation.

• Environmental and Resource Economics Review
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• v.23 no.4
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• pp.553-581
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• 2014

This paper analyzes competition among service stations in the Korean gasoline market. We consider spatial differentiation as a source of product differentiation as well as the characteristics of the stations and vertical contracts between refiners and retailers as factors causing changes in equilibrium prices in the Korean gasoline retail market. The effect of the government's price disclosure policy on the retail market competition is also analyzed. Moran's I test indicates that the prices of neighboring gas stations are spatially correlated in the market. It is also found that gasoline prices for vertically integrated stations are much lower than those for independent stations. In addition, unbranded stations charge lower prices than branded stations but also induce branded stations to price more competitively. Meanwhile, the government's price disclosure policy did intensify price competition in the retail gasoline market. It is inferred that the price disclosure policy contributed to retailers gaining more bargain power in price negotiation with refiners, causing an eventual increase in retail prices.

• The Journal of the Convergence on Culture Technology
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• v.10 no.1
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• pp.159-164
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• 2024

The domestic petroleum market is highly sensitive to changes in international oil prices. So, it is important to identify and respond to those changes. In particular, it is necessary to clearly understand the factors causing the price fluctuations of gasoline, which exhibits high consumption. International gasoline prices are influenced by global factors such as gasoline supplies, geopolitical events, and fluctuations in the U.S. dollar. However, previous studies have only focused on gasoline supplies. In this study, we explore the causal relationship between economic indicators and international gasoline prices using various machine learning-based regression models. First, we collect data on various global economic indicators. Second, we perform data preprocessing. Third, we model using Multiple linear regression, Ridge regression, and Lasso(Least Absolute Shrinkage and Selection Operator) regression. The multiple linear regression model showed the highest accuracy at 96.73% in test sets. As a result, Our Multiple linear regression model showed the highest accuracy at 96.73% in test sets. We will expect that our proposed model will be helpful for domestic economic stability and energy policy decisions.

• The Journal of the Convergence on Culture Technology
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• v.9 no.6
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• pp.251-256
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• 2023

International diesel prices play a crucial role in various sectors such as industry, transportation, and energy production, exerting a significant impact on the global economy and international trade. In particular, an increase in international diesel prices can burden consumers and potentially lead to inflation. However, previous studies have primarily focused on gasoline. Therefore, this study aims to propose an international diesel price prediction model. To achieve this goal, we utilize various global economic indicators and train a linear regression model, which is one of the machine learning methodologies. This model clearly identifies the relationship between global economic indicators and international diesel prices while providing highly accurate predictions. It is expected to aid in understanding overall economic trends including market changes.

• The Journal of the Convergence on Culture Technology
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• v.9 no.5
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• pp.509-515
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• 2023

Despite the continued development of alternative energies, fuel consumption is increasing. In particular, the price of gasoline fluctuates greatly according to fluctuations in international oil prices. Gas stations adjust their gasoline inventory to respond to gasoline price fluctuations. In this study, news datasets is used to analyze the gasoline consumption patterns through fluctuations of the gasoline inventory. First, collecting news datasets with web crawling. Second, summarizing news datasets using KoBART, which summarizes the Korean text datasets. Finally, preprocessing and deriving the fluctuations factors through N-Gram Language Model and TF-IDF. Through this study, it is possible to analyze and predict gasoline consumption patterns.

• Journal of Power System Engineering
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• v.22 no.6
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• pp.67-73
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• 2018

Gasoline that meets the quality standards is distributed in Korea. However, consumers who use toluene or solvent mixed with gasoline have appeared due to rising crude oil prices and for the purpose of tax evasion. Gasoline quality standard is enacted by the domestic and international research reference. A wrong fuel can influence automobile performance or environmental issue. Thus, empirical data from this issue is necessary. Therefore, this research observed catalyst influence by gasoline property change and inspect influence of environment. In this study, fuel property evaluation, lean-burn evaluation, and real vehicle exhaust emission test were performed. In the result of fuel property, the fuel "A" was measured to be up to 27% less octane than the normal gasoline and the distillation property was measured 24% higher than normal gasoline. In the test result of single cylinder engine lean-burn test, the fuels "A" and "B" show torque value 20% less than the normal gasoline. As a result of vehicle test using the catalyst, the fuel "A" was increased more than the normal gasoline with 83% THC, 1,806% CO and 128% NOx, and the fuel "B" was increased more than normal gasoline with 1.6% THC, 391% CO and 142% NOx.

• Environmental and Resource Economics Review
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• v.22 no.4
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• pp.643-670
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• 2013

This study analyzed the impact of crude oil inventory while gasoline price adjusts to international crude oil price(WTI) fluctuations. We mainly focused on asymmetric relationship between crude oil and petroleum product prices and added oil inventory as an variable, using the error correction model which is based on Borenstein et al.(1997). This paper selected the sample period from January 1988 to December 2012, analyzed the asymmetry of each intervals and the influence of crude oil inventory to the degree of asymmetry changes, both full period and five years period respectively. The results showed that when considering crude oil inventory, existence and degrees of time amount asymmetry varies.

• Environmental and Resource Economics Review
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• v.24 no.2
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• pp.311-342
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• 2015

We evaluate two main rationales of massive policy intervention of Lee Administration in the Korean transportation fuel market: high market share of domestic refineries, perceived by the Administration as the result of high market concentration, and asymmetry in price adjustment, perceived as the result of collusion. Domestic refineries, huge in capacity and located at seaports, maintain international competitiveness in price. Considering market openness offering preferential treatment to importers, they set domestic prices competitively on the basis of MOPS prices. Yet, the price competitiveness of domestic refineries is so high that they are able to sustain high market share. We confirm that the Korean before-tax consumer prices of gasoline and diesel are lower than Japan's and the weighted averages of 27 EU countries by as much as 159KRW and 21KRW per liter in the case of gasoline and 170KRW and 63KRW in the case of diesel. Price asymmetry is caused by diverse economic and managerial reasons and, as FTC (2005) states, price asymmetry does not immediately imply exercise of market power or collusion. We analyzed price asymmetry in Korea, Japan and 14 EU countries, and found asymmetry in Korea and 11 EU countries in the case of gasoline and in Korea and 8 EU countries in the case of diesel.

• Environmental and Resource Economics Review
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• v.22 no.4
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• pp.613-641
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• 2013

This paper uses the error correction model to analyse dynamic gasoline price adjustments of the four refiners. Unlike the existing studies, this model allows a refiner's asymmetric adjustment to changes in the other refiners' prices as well as in its own price and costs. With the estimation results, we can obtain the following findings. First, there are the asymmetric price adjustments to changes in exchange rate and international gasoline price, but showing opposing directions. Second, for most of the refiners, the prices respond immediately to the lagged deviation from the long run equilibrium price, but asymmetrically respond for a few refiners. Third, there are some refiners that adjust their price to the other refiners' price deviation from the long run equilibrium. For some refiners, there are competitive price adjustments to the others' price deviations. These findings imply that a refiner faces inelastic demand, intends to maintain implicitly a relative level of its own price to others, and tends to respond competitively to the others' price deviation from the equilibrium.

• New & Renewable Energy
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• v.4 no.2
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• pp.52-60
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• 2008

More people have become interested in hybrid vehicles - which have been heralded as environmentally friendly automobiles - recently as the opening of domestic hybrid vehicle market draws near. Since gasoline, diesel and LPG hybrid vehicles will be produced, a need exists to conduct economic feasibility study of each vehicle type. This research analyzed projected benefits of these hybrid vehicles based on the 1600cc model. There are two categories of benefits: 1) reduced fuel costs for the owners of the vehicles; and 2) reduced environmental pollution cost. We conducted a sensitivity analysis and estimated the domestic consumer fuel costs based on the international oil prices of 100USD, 150USD, and 200USD per barrel. The analysis showed savings of 2 to 4 million Won in fuel cost and 1 to 2 million Won in environmental pollution cost; therefore, the hybrid vehicles are not economically feasible if they are between 3 to 5 million Won more expensive than the conventional internal combustion engine vehicles.