Diesel Price-Linked Subsidies for Trucks and Buses Raised by 53%... 250,000 Won Monthly Fuel Savings for 25-Ton Trucks

Application of Revised Passenger and Freight Transport Service Acts

The Ministry of Land, Infrastructure and Transport announced on the 12th that it will raise the cap on diesel price-linked subsidies from the previous 183 won per liter to 280 won per liter, an increase of 53%. These subsidies, which are available to bus and freight transport operators when diesel prices exceed a certain threshold, are expected to help ease the increased fuel cost burden caused by the war.

Previously, since March, the government has provided subsidies covering 70% of the amount exceeding 1,700 won per liter for diesel prices. However, the cap was set at 183 won per liter, which is the actual fuel tax burden for business operators, making it difficult to provide additional support when diesel prices exceeded 1,961 won per liter.

On the 7th, revision bills for the Passenger Transport Service Act and the Freight Motor Vehicle Transport Business Act passed the National Assembly, allowing the subsidy ceiling to be raised above 183 won per liter if a resource security crisis alert is issued under the Special Act on National Resource Security. This has created a legal basis for providing additional support.

With recent diesel prices surpassing 2,000 won per liter, the eligible diesel price range for the subsidy will be raised from 1,700–1,961 won per liter to 1,700–2,100 won per liter. As the maximum subsidy increases to 280 won per liter, a 25-ton freight truck that uses 2,402 liters per month will see its monthly subsidy rise from 960,000 won to 1,190,000 won.

The Ministry plans to swiftly implement follow-up measures, such as revising subsidy guidelines, so that the new standards can be applied immediately upon the law’s enforcement. Jae Soon Park, Director General for Transport Logistics at the Ministry, stated, "With bus and freight transport operators facing a significant increase in costs due to high fuel prices, we expect this measure will help ease their fuel burden to some extent. We will continue to monitor fuel price trends and, if necessary, prepare additional support measures in cooperation with relevant ministries."