Monthly Average Fuel Subsidy for Large Freight Trucks Increased from 190,000 KRW to 320,000 KRW

Expanded Payments for Trucks, Buses, and Taxis from the 1st
Additional 50 Won per Liter... Extension Until September

Photo by Asia Economy

The fuel price-linked subsidy for diesel-powered trucks, buses, and taxis will increase by 50 KRW per liter starting from the 1st of next month. Approximately 440,000 trucks, 20,000 buses, and 500 taxis are expected to benefit from this.

The Ministry of Land, Infrastructure and Transport announced that it has revised and promulgated the 'Truck Fuel Subsidy Management Regulations' and the 'Passenger Vehicle Fuel Subsidy Payment Guidelines' to expand the fuel price-linked subsidy for trucks, buses, and taxis, and that these changes will take effect from June 1.

The diesel fuel price-linked subsidy system supports 50% of the amount exceeding the base price to workers in trucks, buses, and taxis when the diesel price exceeds the reference amount.

This system was introduced through the Price-Related Ministers' Meeting held on April 5 to support transportation and logistics industry workers whose incomes decreased due to the sharp rise in fuel prices earlier this year, and has been in effect since May 1.

However, as the diesel price recently surpassed the gasoline price, increasing the fuel cost burden on the transportation and logistics industry, the inter-ministerial meeting on May 17 decided to lower the payment threshold (from 1,850 KRW to 1,750 KRW per liter) and extend the application period by two months (from July to September).

As a result of this measure, if the diesel price is 2,000 KRW, the subsidy will increase from the original 75 KRW per liter (=(2,000 - 1,850) x 50%) to 125 KRW per liter (=(2,000 - 1,750) x 50%).

Accordingly, for large trucks over 12 tons, the monthly average subsidy is expected to increase by 130,000 KRW, from the original 190,000 KRW to 320,000 KRW.

Gu Heon-sang, Director of Logistics Policy at the Ministry of Land, Infrastructure and Transport, said, "With this expansion of the fuel price-linked subsidy, we expect to alleviate the increased fuel cost burden on the truck, bus, and taxi industries caused by the recent high fuel prices," adding, "We plan to continuously explore support measures depending on future fuel price situations."

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