Gyeongnam Province Provides 185 KRW per Liter Subsidy for Tax-Free Agricultural Fuel

Support for Half of Usage from March to December This Year
Also Providing Funds for Purchasing Agricultural Materials, Fertilizers, and Feed

Gyeongnam Provincial Government. / Photo by Se-ryeong Lee ryeong@

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] Gyeongsangnam-do is promoting a support project for the purchase cost of tax-free agricultural fuel.

Gyeongnam Province announced on the 12th that since the outbreak of the war between Russia and Ukraine at the end of February, international oil prices have risen, causing the price of tax-free fuel to increase by about 45% compared to normal times as of September.

Accordingly, it explained that it will support the purchase cost of tax-free fuel and the price of agricultural materials to reduce the production cost burden on farmers struggling with rising fuel costs.

The support targets are farmers or agricultural corporations residing in the province who have been issued agricultural tax-free fuel purchase cards. According to the province, about 121,000 people are expected to benefit.

Through this project, the province plans to support 185 KRW per liter regardless of fuel type for 50% of the usage amount of three types of fuel?gasoline, diesel, and kerosene?used by farms from March to December this year, a period of 10 months.

The application period for support is until November, and eligible recipients must use all their allocated amounts for December by the end of November and submit an application form to their local eup/myeon/dong community service center from the 24th of this month to November 25th.

The province also took measures to support the price of agricultural materials and fertilizers, which rose 91.3% compared to the same period last year.

It allocated a budget of 49.9 billion KRW for the purchase of mineral fertilizers, supporting 80% of the price increase for 86,000 tons.

For organic fertilizers such as livestock manure compost totaling 100,000 tons, it invested 7.5 billion KRW to provide 1,500 KRW per bag.

For livestock farmers struggling with feed prices that have risen 33.2% compared to two years ago, the province received an allocation of 128 billion KRW from the government’s special feed purchase support fund of 1.5115 trillion KRW and is providing loan support totaling 80.4 billion KRW, including 47.6 billion KRW in the first half of the year.

Jeong Yeonsang, Director of the Agricultural Policy Bureau, said, “Tax-free fuel is already exempt from fuel tax and is unrelated to the government’s fuel tax reduction policy,” adding, “We have launched emergency support as we expect a sharp increase in heating demand in Gyeongnam due to the upcoming harvest season, increased use of large agricultural machinery, and the large number of facility horticulture farms.”

He also said, “We hope this will reduce the management burden on local farmers even a little,” and added, “We plan to do our best to stabilize farm management by reviewing and actively reflecting dairy policies that the province can support among the requested projects needed by farms.”

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