(1) Reasons for Proposal

This proposal seeks to improve some inadequate provisions under current law that have been made apparent through the operation of the current subsidy regime. As improper claims on fuel subsidy are increasing every year, the proposal seeks to limit the oil purchase card transactions to fuel stations with POS (Point-Of-Sale) system installations; and to refuse the granting of fuel subsidy if the amount of fuel purchased at a single pump exceeds the capacity of the vehicle’s fuel tank. The proposal also seeks to delete the provision where a newly approved courier vehicle is suspended of fuel subsidy for two years, since the provision raises issues such as fairness.

(2) Major Provisions

A. Allow a newly approved courier vehicle to receive fuel subsidy (Article 2)

B. Specify the content of the provision so that the monthly limit of fuel subsidy for special vehicles for disaster-relief and special tasks will be based on gross vehicle weight (Article 7)

C. Allow an individual business entity who owns several trucks to be issued with an oil purchase card for trucks that are driven by himself/herself (Article 16)

D. Ensure that oil purchase card transactions will be carried out with fuel stations that have POS (Point-Of-Sale) system installed, so that investigations into participation/collusion in improper claims can be conducted (Articles 13, 25 and 26)

E. Ensure that a subsidy will be denied in advance if the amount of fuel purchased at a single pump exceeds the capacity of the approved vehicle’s fuel tank, and will be later granted if the owner of the truck is able to provide an explanation (Articles 25 and 26)

F. Improve the jurisdiction provision so that the jurisdiction for approval of trucking business will also be the jurisdiction managing fuel subsidies to improve on the administrative inefficiency that arises when the two jurisdictions are different (Article 26)

G. For redeeming subsidies due to improper claims, ensure that the amount of redeemed subsidy will be limited to the amount that was improperly claimed (Article 29)

H. For sale/purchase transaction of trucks, provide a basis for the purchaser to request relevant data such as record of administrative dispositions, suspicious fueling transaction records, etc., to the seller (Article 31)