SEOUL - The South Korean government announced plans this week to potentially allow the setup of "alternative gas stations" that would sell fuel at lower prices as a way to help curb rising energy costs, according to Yonhap News Agency.

"Designed to break up the current fuel distribution system dominated by oil refiners, the plan calls for importing refined oil products from abroad and supply alternative gas stations with them through a franchise network," writes the news source.

For distribution, state-run Korea National Oil Corp. (KNOC) would be responsible for importing petroleum products from places such as Singapore, the Ministry of Knowledge Economy said.

Currently, several refiners dominate the local oil market and have "drawn fire for making large profits at the expense of consumers," while higher fuel prices have also been blamed for "triggering inflationary pressure."

The news source notes that the Ministry of Knowledge Economy says the new gas stations could be operated by public organizations and groups of small-sized entrepreneurs, with the government to help find necessary land needed to build such outlets, such as public parking lots, land owned by the government and new housing development areas.

"To ensure minimum levels of profit, the government may give subsidies and devise other support that can keep prices low," the Ministry said. "If the plan moves forward, such gas stations could account for roughly 10 percent of the total."

Meanwhile, the Korea Oil Station Association is opposed to the plan, saying that it would hurt existing gas stations and distort the market.

"The profit margin of gas stations are not high and the latest proposal can only be seen as a move to exert pressure on the market," an association source told the news source.