Diesel is believed to be more harmful to the environment than any other fuel.

Citing an insider within refiner SK Corp, the Yonhap news agency reported, “Oil refiners are unhappy about the government’s plan to raise the price of diesel fuel higher than expected over environmental concerns.”

“We are not denying that diesel fuel causes pollution, but it is also the cheapest fuel available [and] there are ways to make the diesel fuel more environmentally friendly, but we can’t do it without government help,” added the source.

Another thing which has raised the ire of the refiners is the government’s decision to move up its original schedule on the slashing of permissible sulphur levels in diesel from 2006 to July this year.

The current permissible level is 430 parts per million of sulphur. The new level is 30 parts per million.

“If the schedule is pushed up, it just means it will be more costly for us to develop such fuel. Neither we nor the customers can fully carry the costs. That is why the government should provide support such as tax incentives,” said the informant.

“However, with the government yet to introduce a bill in the National Assembly for the mandatory cut in sulphur content, it is highly unlikely the measure will be implemented in July,” added the source.