Jeju Island will extend its fuel cost support program until April, helping commercial vehicle operators cope with rising diesel prices due to international conflicts.
Due to soaring diesel prices in Jeju, caused by the war between the U.S. and Iran, the local government is expanding its fuel cost support program. The program, known as the 'Diesel Price Linked Subsidy', will now be in effect until April and will offer 50% support for the difference in diesel prices exceeding 1700 won per liter. Initially set to expire last month, this extension aims to alleviate financial strain on commercial transport operators in the area, including freight trucks and taxis.
As of the 11th of this month, the average price of diesel in Jeju was 1904 won per liter, significantly above the subsidy threshold. Under the extended measure, operators can receive 100 won back when the price hits 1900 won per liter, showcasing the government's effort to provide relief amid escalating fuel costs. The Urgency of the assistance underscores the impact of global geopolitical events on local economies.
Additionally, plans to potentially increase the scale of the support have been announced. The Ministry of Land, Infrastructure, and Transport stated it would revise guidelines to increase subsidies from 50% to 70% for costs exceeding 1700 won per liter. Local officials have allocated 9.1 billion won for the subsidies in 2023 but are also monitoring expenditure closely, indicating a possibility of supplementary budgets should funding fall short, ensuring continued support for those affected by the rising fuel prices.
