Transport firms to get fuel subsidy as price soars

The government on Thursday proposed a new act on a fixed-term fuel subsidy, which would compensate transport companies for the sudden rise in fuel prices caused by Russia’s attack on Ukraine in February.

The subsidy would apply to road transport of goods and passengers, said the Ministry of Economic Affairs and Employment in a press release.

The act would cover 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.

The subsidy would be granted for three months (February-April 2022) and it would 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 proposed act would be a part of a funding package for transport companies and it would enter into force on a date to be specified by a government decree.

The State Treasury would act as the state aid authority. Applications for the subsidy would be accepted in November 2022.