Sunday August 14, 2022

Transport companies to get temporary fuel subsidy

Published : 05 Aug 2022, 01:41

  DF Report

Photo: Ministry of Economic Affairs and Employment.

The government on Thursday proposed that the President approve the Act on Fixed-Term Fuel Subsidy for Transport Companies and, based on a resolution approved by Parliament, decided to study whether it would be possible to support operators using light fuel oil as well.

The fuel subsidy would compensate operators for the sudden rise in fuel prices, which has been caused by Russia’s attack on Ukraine in February 2022, said the Ministry of Economic Affairs and Employment in a press release.

The subsidy would apply to road transport of goods and passengers.

The Act covers all forms of fuel and electricity, with the exception of fuel oil, as its use is prohibited in transport.

The rising price of fuel has put transport companies in a difficult situation, which in turn could have an impact on Finland’s security of supply.

Parliament required that the government urgently prepare a report and, if necessary, a proposal on whether it is possible, within the framework of the available appropriations, to support operators using light fuel oil who are not currently eligible for this fuel subsidy.

The fuel subsidy will be granted for three months (February–April 2022) and it will cover 5 per cent of the fuel costs in these months.

The compensation has been calculated based on the average price of fuel reported by Statistics Finland.

The Act will remain in force for the period between 1 September–31 December 2022.

The State Treasury acts as the state aid authority. Applications for the subsidy will be accepted in November 2022 at the latest.