SEOUL, May 30 (Yonhap) — The government will provide more subsidies to truck drivers and other users of diesel vehicles as part of efforts to ease their burden from rising fuel prices, the government said Monday. Ministry of transportation.
The average retail price of diesel in South Korea soared to more than 2,000 won ($1.59) a liter last week, from around 1,364 won in January, due to a tight supply caused by the war in Ukraine. It also topped gasoline prices for the first time in 14 years.
As part of the revision of 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 from June 1, according to the Ministry of Land, Infrastructure and transports.
A lower base price means more subsidies, because since May the government has offered half the amount as a subsidy that exceeds the threshold price compared to the price of diesel.
The new measure is expected to increase the monthly subsidy to, say, a 12-ton truck driver by 70 percent to 320,000 won per month, the ministry said.
“Some 440,000 freight truck drivers, 20,000 bus drivers and some 500 taxi drivers are expected to receive greater benefits,” a ministry official said. “We will continue to look for support measures depending on the evolution of oil prices.”