The government has decided to extend the reduction in fuel tax to alleviate the public’s burden on fuel costs. According to the Ministry of Strategy and Finance on the 14th, the “temporary fuel tax cut” on transportation fuel, which was set to end on August 31, will be extended for an additional two months until October 31.
The current reduction rates of 10% for gasoline and 15% for diesel and liquefied petroleum gas (LPG) butane will remain in effect. Currently, the fuel tax per liter is 738 won for gasoline, 494 won for diesel, and 173 won for LPG butane, with respective price reduction effects of 82 won, 87 won, and 30 won continuing for two more months.
The government has been reducing the fuel tax since the end of 2021, extending the measure a total of 16 times depending on oil price and inflation conditions. This extension marks the 17th time.
The amendments to the enforcement decrees of the Transportation, Energy, and Environmental Tax Act, and the Individual Consumption Tax Act, necessary for the extension of the reduction measure, are scheduled to be reviewed in a Cabinet meeting on the 26th and implemented from the 1st of next month.
A government official stated, “This extension measure considers the uncertainties of international and domestic oil prices and the public’s burden on fuel costs.”