From April to June, domestic importers such as refiners that bring in crude oil from the Americas, Africa, and Europe will receive refunds covering 100% of the freight cost difference compared with Middle Eastern crude. Previously, only 25% was supported, but the support has been expanded in light of the "Middle East war."
The Ministry of Trade, Industry and Resources on the 15th held a "naphtha and crude oil supply response review meeting" and announced a revamp of the crude oil import levy refund program with these details.
Under the crude oil import levy refund program, the government collects a levy (16 won per liter) from refiners and petroleum importers and exporters when crude is imported, then refunds it afterward if conditions are met. When crude has been sourced from non-Middle Eastern regions, about 25% of the additional freight expense compared with Middle Eastern crude had been refunded, but the program has been expanded to return the full amount. However, refunds are limited to the amount of the crude oil import levy of 16 won per liter.
The expanded program, to be run for three months, is expected to increase refunds by about 127.5 billion won. A government official said, "We will support the domestic industry's efforts to diversify crude oil procurement in a crude supply crisis."