Support for Diesel Fuel Price-Linked Subsidy Extended Until Year-End

If Diesel Price Exceeds 1,700 KRW per Liter, 50% of the Excess Amount Supported
Support Targets Include 440,000 Freight Trucks, 20,000 Buses, and 500 Taxis

[Image source=Yonhap News]

[Asia Economy Reporter Cha Wanyong] The deadline for the fuel price-linked subsidy, introduced to reduce fuel costs for the freight truck, bus, and taxi industries, has been extended by three months until December.

The Ministry of Land, Infrastructure and Transport announced on the 26th that it has revised and promulgated the 'Freight Truck Fuel Subsidy Management Regulations' and the 'Passenger Vehicle Fuel Subsidy Payment Guidelines' to expand the diesel fuel price-linked subsidy, which will take effect from October 1.

The diesel fuel price-linked subsidy is a system that supports 50% of the excess amount when the diesel price exceeds the reference price (1,700 KRW per liter) to freight truck, bus, and taxi workers. The subsidy was scheduled to end this month. The payment targets include 440,000 freight trucks, 20,000 buses, and 500 taxis.

However, as domestic diesel prices remain high at 15.6% compared to the first quarter, considering the burden on the transportation and logistics industries, the subsidy payment criteria have been extended through inter-ministerial meetings (Ministry of Economy and Finance, Ministry of Land, Infrastructure and Transport, Ministry of Oceans and Fisheries).

Gu Heonsang, Director of Logistics Policy at the Ministry of Land, Infrastructure and Transport, said, “With this temporary extension of the fuel price-linked subsidy, we expect to somewhat alleviate the fuel cost burden on the freight truck, bus, and taxi industries caused by high oil prices.”

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