Government Expands Diesel Subsidy Payments... Additional Support of 50 Won per Liter

Fuel-Linked Subsidy Payment Standard Price Reduced from 1850 KRW to 1750 KRW per Liter

On the 11th, when the national average diesel price surpassed the gasoline price, fuel price information was displayed at a gas station in Seoul. According to the Korea National Oil Corporation's oil price information service Opinet, as of 12 PM that day, the average diesel price at gas stations nationwide was 1,946.65 KRW per liter, which was 0.77 KRW higher than the average gasoline price of 1,945.88 KRW per liter. This is the first time in about 14 years since June 2008 that domestic diesel prices have exceeded gasoline prices. Diesel prices are soaring due to a global diesel shortage centered in Europe and supply difficulties of petroleum products triggered by the Ukraine-Russia conflict. Photo by Moon Honam munonam@

[Asia Economy Sejong=Reporter Kwon Haeyoung] The government has decided to expand the payment of diesel fuel price-linked subsidies to ease the burden on truck and taxi drivers, whose expenses have increased due to the recent rise in diesel prices. This is part of an effort to extend support to livelihood-type business operators as diesel prices have surpassed gasoline prices.

On the morning of the 17th, the government held a "Meeting of Relevant Ministries on Diesel Fuel Price-Linked Subsidies" and made this decision.

The government will lower the current standard price for diesel fuel price-linked subsidy payments from 1,850 KRW per liter (ℓ) to 1,750 KRW, a reduction of 100 KRW. Currently, if the diesel price exceeds 1,850 KRW per liter, the government supports 50% of the excess amount over the standard price. By lowering the standard price to 1,750 KRW, the government can increase the scale of subsidy support.

Setting the diesel price at 1,960 KRW, the current total support amount is 55 KRW. With this reduction in the payment standard price, the total support amount will change to 105 KRW. This means that the fuel cost burden for diesel-using transport operators eligible for the fuel subsidy will be further reduced by 50 KRW per liter.

The recipients of the diesel subsidy include approximately 445,000 trucks, 21,000 buses, 93,000 diesel taxis, and 13,000 coastal cargo ships.

Additionally, the government has decided to extend the deadline for the fuel price-linked subsidy payments from the original end of July to the end of September.

The government plans to promptly revise the related notification with the goal of implementing it on June 1.

This content was produced with the assistance of AI translation services.