Diesel Fuel Price-Linked Subsidy Increased by 25 KRW per Liter Starting July

Large Freight Trucks Can Cost Up to 470,000 Won per Month

[Image source=Yonhap News]

[Asia Economy Reporter Kim Min-young] The Ministry of Land, Infrastructure and Transport will expand the diesel fuel price-linked subsidy provided to freight trucks, buses, and taxis starting in July.

The Ministry announced on the 30th 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 for freight trucks, buses, and taxis, and will implement the changes from the 1st of next month.

The diesel fuel price-linked subsidy system supports 50% of the excess amount when the diesel price exceeds the reference price to workers in freight trucks, buses, and taxis. It was introduced through the Price-Related Ministers' Meeting held on April 5 to support transportation and logistics industry workers whose income decreased due to the sharp rise in fuel prices earlier this year. It is being implemented temporarily from May 1 to September 30.

In May, as the diesel price surpassed the gasoline price and the fuel cost burden on the transportation and logistics industry increased, the payment standard was lowered from 1,850 KRW to 1,750 KRW per liter, and the payment period was extended by two months from July to September.

However, as the diesel price recently exceeded 2,100 KRW per liter and the high fuel price situation continues, the payment standard will be lowered once more from 1,750 KRW to 1,700 KRW per liter.

With this measure, the fuel price-linked subsidy supported until September will increase by 25 KRW per liter, and for large freight trucks over 12 tons, the subsidy will increase by 65,000 KRW, allowing a maximum monthly support of up to 470,000 KRW.

Goo Hyun-sang, Director of Logistics Policy at the Ministry of Land, Infrastructure and Transport, said, "We expect that the expansion of this fuel price-linked subsidy will help reduce the fuel cost burden on the freight truck, bus, and taxi industries caused by high fuel prices."