Govt Extends Tax-Exempt Oil Subsidies for Agriculture and Fisheries by Three Months Through December, Adds W79.1 Billion in Support

The government's oil-linked subsidies for tax-exempt fuel used in agriculture and fisheries, which were set to expire at the end of this month, will be extended by three months.

The Ministry of Budget and Planning announced that the government approved a spending plan of 79.1 billion won from the general purpose reserve fund for this purpose during a Cabinet meeting on the 29th.

Out of the reserve fund, 66 billion won has been allocated for tax-exempt diesel for three types of agricultural machinery and heating oil for horticultural facilities, while 131 billion won has been assigned to tax-exempt diesel for fisheries.

The government has been providing these subsidies to ease the burden on farming and fishing households, which has surged due to high oil prices stemming from the Middle East conflict.

Through this year's supplementary budget, 118.8 billion won was arranged to provide oil-linked subsidies covering up to 70 percent of the amount by which tax-exempt oil prices for agriculture and fisheries exceed the baseline price since March.

The payment limit was also raised in May.

Although the subsidy support was originally scheduled to end this month, the extension was decided as September tax-exempt oil prices remained at a level about 25 percent higher than in February. Consequently, the government decided to disburse the budget utilizing the general purpose reserve fund to respond to high oil prices on the same day.

The government stated, "Related ministries, including the Ministry of Agriculture, Food and Rural Affairs and the Ministry of Oceans and Fisheries, will push forward with extending the support period and modifying project funds through revisions to business guidelines within this week," adding, "We also plan to make every effort to monitor the execution status."

(Photo: Provided by Ministry of Budget and Planning, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.