A fisherman’s truck is seen with fuel containers at Daebyeon Port in Busan, where tax-free fuel prices rose in April. [Photo=Yonhap News]
In response to rising international oil prices that have increased fuel costs for farmers and fishermen, the South Korean government has decided to raise the tax-free fuel subsidy to 176.2 won per liter.
On May 29, during a meeting at the Government Seoul Building led by Deputy Prime Minister and Minister of Economy and Finance Ku Yun-cheol, officials announced a plan to expand support for fuel costs for farmers and fishermen.
The government has been providing a fuel subsidy of up to 70% of the excess price above a set standard for tax-free fuel, funded by an additional budget of 118.8 billion won, to assist farmers and fishermen who are vulnerable to rising production costs due to the increase in oil prices stemming from the Middle East conflict.
However, the ongoing high oil prices have made it impossible to support the increases that exceed the subsidy limit. As of May 26, the prices for tax-free diesel and kerosene were 1,512 won and 1,424 won per liter, respectively, marking increases of 34.7% and 27.7% compared to pre-war levels.
Additionally, the subsidy limit for fuel price adjustments for freight and passenger vehicles has risen from 183.2 won to 280 won per liter, raising concerns about fairness.
To address these issues ahead of the busy farming and fishing seasons, the government has decided to increase the subsidy limit from 138.4 won to 176.2 won per liter.
A government official stated, "We plan to implement the increased subsidy limit immediately for purchases made from today."
On May 29, during a meeting at the Government Seoul Building led by Deputy Prime Minister and Minister of Economy and Finance Ku Yun-cheol, officials announced a plan to expand support for fuel costs for farmers and fishermen.
The government has been providing a fuel subsidy of up to 70% of the excess price above a set standard for tax-free fuel, funded by an additional budget of 118.8 billion won, to assist farmers and fishermen who are vulnerable to rising production costs due to the increase in oil prices stemming from the Middle East conflict.
However, the ongoing high oil prices have made it impossible to support the increases that exceed the subsidy limit. As of May 26, the prices for tax-free diesel and kerosene were 1,512 won and 1,424 won per liter, respectively, marking increases of 34.7% and 27.7% compared to pre-war levels.
Additionally, the subsidy limit for fuel price adjustments for freight and passenger vehicles has risen from 183.2 won to 280 won per liter, raising concerns about fairness.
To address these issues ahead of the busy farming and fishing seasons, the government has decided to increase the subsidy limit from 138.4 won to 176.2 won per liter.
A government official stated, "We plan to implement the increased subsidy limit immediately for purchases made from today."
* This article has been translated by AI.
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