Gasoline prices rising▶ Click here for a larger view
–
From July this year, the ratio of biodiesel, which is included in diesel vehicles, will be raised from 3.0% to 3.5%.
This rate increases by 0.5 percentage points every three years, up to 5.0% in 2030.
The Ministry of Trade, Industry and Energy announced on the 31st that it announced on the 1st of the following month that the revision of the enforcement ordinance of the’New Energy and Renewable Energy Development, Use, and Dissemination Promotion Act’ will be announced on the 1st of the following month, which will step up the ratio of mandatory renewable fuel mixing (RFS).
RFS is a system in which petroleum refiners or importers and exporters are obligated to supply biodiesel in a certain ratio with diesel for automobiles.
To increase the use of renewable energy fuels, the government raised this ratio, which is currently 3%, by 0.5 percentage points every three years, 3.5% from July to 2023, 4.0% from 2024 to 26, 4.5% from 2027 to 29, and 2030. The plan is to adjust it to 5%.
The Ministry of Industry said, “As a result of the research service, even if the mixing ratio is increased to 5%, there is no effect on vehicle performance above the legal standard (minus 18 degrees).”
Biodiesel is a biofuel made from vegetable oil or animal fat, which is twice as expensive as diesel.
The Ministry of Industry explained, “The refining industry’s mandatory performance costs will increase in part, but it is analyzed that there is economic feasibility when comprehensively considering the effects of creating new and renewable markets and reducing greenhouse gases.”
The standard for domestic sales volume of petroleum refiners for the calculation of annual blending obligations will also be changed from the current’last year’ to’the year’ in the same way as the oil exporters and importers.
In this way, oil refiners can respond flexibly to market fluctuations, such as fluctuations in sales volume compared to the previous year or the prospect of a decline in diesel sales.
The Ministry of Industry is expected to complete the revision of the enforcement decree by the end of June, and take effect from July 1st.
The Ministry of Industry said that it is also considering introducing the’flexible compliance system’ suggested by the oil refinery.
It is a system that allows deposits of excess of the mixed obligation or deferment of shortfalls, and plans to actively respond so that the revised bill of the new and renewable law proposed for this can be passed promptly by the National Assembly.
[연합뉴스]
Copyrights ⓒ Yonhap News. Unauthorized reproduction and redistribution prohibited
–
