The government decided to extend by two more months, through June, the fuel price-linked subsidy program for diesel and CNG (compressed natural gas) provided to buses, taxis, cargo trucks, and coastal cargo ships.

Truck drivers refuel at a gas station in Jung-gu, Incheon, on the 13th of last month. /Courtesy of Yonhap News

Koo Yun-cheol, Deputy Prime Minister and Minister, held a meeting of the Emergency Economic Headquarters and the Ministers' Meeting on Economy and External Economic Relations at Government Complex Seoul on the 30th and said, "Following the payment of support funds for high oil price damages this week, we will extend through June, by two months, the fuel price-linked subsidy that is temporarily raised from the current 50% to 70%."

The fuel price-linked subsidy is a program that compensates transport operators for a certain share of the amount exceeding the government-set reference price when diesel or CNG prices rise above it. Currently, 70% of the amount exceeding 1,700 won per liter (ℓ) is subsidized for diesel, and 50% of the amount exceeding 1,330 won per ㎥ is subsidized for CNG. However, the subsidy amount is capped at 183.21 won per ℓ (㎥).

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