South Korea restores subsidy to cover extra transport costs for crude oil imports from non-Middle Eastern countries
Sea-news.az reports citing Seanews.az, that according to an announcement by the Ministry of Trade, Industry and Energy, the government will compensate companies purchasing oil from alternative sources for additional freight costs, while also supporting the use of strategic petroleum reserves and alternative shipping routes.
The government has relaunched the program—previously implemented from April to June—to cover the full amount of additional transportation costs for crude oil originating outside the Middle East. During the previous program period, oil imports from the US increased by 14.2%, from Canada by 160.8%, from Ecuador by 422.1%, and from Africa by 156.7% year-on-year.
Subsidies for long-distance transport are reported to have played a role in reducing South Korea’s dependence on Middle Eastern oil from approximately 70% to the 50% level. Meanwhile, the increase in oil supplies from the US, Canada, Latin America, and Africa significantly extends transport distances to one of Asia’s major oil refining hubs.
The government also restarted its strategic crude oil reserves replacement program on August 24, announcing that the measure could be extended beyond October if necessary.
