DRIVERS STRUGGLE AMID OIL PRICE SURGE

[Anchor Lead]

Soaring oil prices are dealing a heavy blow to the transport sector. With the price of diesel fuel approaching 2,000 won per liter, the transportation business including cargo trucks are facing deep concern. Bus and truck drivers say the more they travel, the more loss they accumulate.

[Pkg]

A transport company operating a fleet of around 50 express buses. With skyrocketing diesel costs, its gas expenses in the past month went up by nearly 200 million won on-year. High oil prices are a double whammy for the company, already struggling with passenger numbers halved amid the pandemic. Its deficit sharply widened this month due to runaway diesel prices.

[Soundbite] Moon Dong-soo(Company executive director) : "We are running a deficit of over 200 million won monthly. If this continues, the company can’t survive."

Cargo truck drivers are no different. Bae Yong-soo covers some 550 kilometers a day and gets paid about 490-thousand won. He spends more than half of this amount, around 260-thousand won, at the pump. Excluding toll fees, and what he pays for meals and urea water solution, what’s left at the end of the day is about 150-thousand won. Then he still needs to pay installments on the vehicle purchase and repair costs. Bae ends up with very little net earning.

[Soundbite] Bae Yong-soo(Cargo truck driver) : "Getting behind the wheel every day is frightening. I honestly think operations should stop altogether."

The government has extended fuel tax cuts. But truck drivers say lower tax also means smaller fuel subsidies and overall, there is little to gain from the tax reduction. The average price of diesel nationwide has surpassed 1,900 won per liter. It’s gone up about 600 won in a year. The transport sector is increasingly distressed by the oil price hikes that see no end.