This photo taken on May 25, 2022, shows a board displaying fuel prices at a gas station in Seoul. (Yonhap)
SEOUL, May 30 (Korea Bizwire) — The government will provide more subsidies to cargo truck drivers and others using diesel vehicles as part of efforts to ease their burden from rising fuel costs, the transport ministry said Monday.
The average retail price of diesel in South Korea soared to over 2,000 won (US$1.59) per liter last week, up from around 1,364 won in January, due to tight supply caused by the war in Ukraine. It also outstripped gasoline prices for the first time in 14 years.
Under the revision to oil subsidy regulations, the threshold price set for subsidy payments will be lowered to 1,750 won per liter from the current 1,850 won starting on June 1, according to the Ministry of Land, Infrastructure and Transport.
A lower base price means more subsidies, as since May the government has offered half of the amount as a subsidy that exceeds the threshold price from the diesel price.
The new measure is expected to increase the monthly subsidy, for example, to a 12-ton truck driver by 70 percent to 320,000 won per month, the ministry said.
“Some 440,000 cargo truck drivers, 20,000 bus drivers and some 500 taxi drivers are expected to enjoy greater benefits,” a ministry official said. “We will continue to seek supportive measures in accordance with changes in oil prices.”
(Yonhap)
