Oil price-linked subsidy for tax-free fuel used in farming and fishing extended to year-end — 79.1 billion won from the purpose reserve fund approved
Source material is a Korean government announcement (in Korean).
The support period for the oil price-linked subsidy for tax-free fuel used in farming and fishing, originally scheduled to end in September 2026, has been extended to the end of the year, and at the Cabinet meeting on September 29, 2026 the government approved 79.1 billion won from the purpose reserve fund for this purpose.
Key facts
| Eligibility | Farming and fishing households that use tax-free fuel for farming and fishing |
|---|---|
| How support works | When the tax-free fuel price exceeds the reference price, 70% of the excess is covered within the maximum payment limit |
| Payment limit | 176.2 won per liter of tax-free diesel (raised from 138.4 won in May 2026) |
| Support period | Originally scheduled to end in September → extended to the end of the year |
| Funding | 79.1 billion won from the purpose reserve fund approved (Cabinet meeting, 2026-09-29), in addition to the 118.8 billion won allocated in this year's 1st supplementary budget |
| Inquiries | Ministry of Agriculture, Food and Rural Affairs, Agricultural Policy Division (농업정책과) (044-201-1711); Ministry of Oceans and Fisheries, Fisheries Policy Division (어업정책과) (051-773-5510) |
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At the Cabinet meeting on September 29, 2026, the government approved a 79.1 billion won expenditure from the purpose reserve fund (목적예비비), as the support period for the oil price-linked subsidy (유가연동보조금) for farming and fishing, originally scheduled to end in September 2026, has been extended to the end of the year. Funded by 118.8 billion won from the 1st supplementary budget of 2026, this subsidy has, since March 2026, covered 70% of the excess amount within the maximum payment limit whenever the price of tax-free fuel for farming and fishing exceeds the reference price, and in May 2026 the payment limit was raised from 138.4 won to 176.2 won per liter of tax-free diesel. As of September 2026, tax-free fuel prices have remained about 25% higher than at the end of February, so the government decided to extend the subsidy to the end of the year through its Chuseok measures for stabilizing people's livelihoods. The Ministry of Agriculture, Food and Rural Affairs (농림축산식품부), the Ministry of Oceans and Fisheries (해양수산부) and others plan to revise the program guidelines during the week of the announcement date (September 29, 2026).
Summaries below are factual notes based on government announcements and primary sources — not evaluations or opinions.
FAQ
Until when is the oil price-linked subsidy for tax-free fuel provided?
The support period, originally scheduled to end in September 2026, has been extended to the end of the year. The Ministry of Agriculture, Food and Rural Affairs, the Ministry of Oceans and Fisheries and others plan to revise the program guidelines during the week of the announcement date (September 29, 2026).
How much is the subsidy?
When the tax-free fuel price exceeds the reference price, 70% of the excess is covered within the maximum payment limit, and in May 2026 the payment limit was raised from 138.4 won to 176.2 won per liter of tax-free diesel.