Oil Price-Linked Subsidy Extended Until April... Freight Truck Owners' Monthly Fuel Cost Reduced to 440,000 Won

The Ministry of Land, Infrastructure and Transport announced on the 11th that it will extend the oil price-linked subsidy for an additional two months until April in order to reduce the fuel cost burden on the transportation and logistics industry. The subsidy rate will also be increased from previous levels.

The oil price-linked subsidy is a system designed to ease cost burdens when oil prices rise sharply. When the price of diesel exceeds 1,700 won per liter, 50% of the excess amount is subsidized. For example, if the price per liter is 2,000 won, 150 won—which is 50% of the 300 won difference—is provided as a subsidy. The maximum subsidy is capped at 183 won per liter. The program covers 380,000 diesel cargo trucks, approximately 16,000 route buses, and certain taxis.

On the 9th, as international oil prices surpass 100 dollars, fuel prices at gas stations nationwide are rising. Cars are lined up at the Mannam Square gas station in Seocho-gu, Seoul, trying to refuel before the prices increase further. March 9, 2026. Photo by Jin-Hyung Kang

The system was first introduced in April 2022 and was initially set to expire in February of this year. The Ministry has revised the subsidy payment guidelines to extend the support from today until next month. For fuel purchased by operators between March 1 and March 10, when the subsidy was suspended, retroactive support will also be provided.

Previously, 50% of the amount exceeding the base price was subsidized, but this rate will be raised to 70%. After revising the guidelines this month, the increased rate will apply retroactively to purchases made after March 1. With the subsidy, the Ministry estimates that the actual fuel cost burden for a 25-ton cargo truck will be reduced to around 440,000 won.

The Ministry stated, "Even after this measure, we will continue to monitor the highly volatile oil price situation and consider additional support measures if necessary."

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