The government is set to significantly expand the reduction of the fuel tax on liquefied petroleum gas (LPG) and butane as part of its measures to address the cost of living. Deputy Prime Minister and Minister of Economy and Finance, Koo Yun-cheol, announced the “Response Plan for Special Management Items on Cost of Living” during the “Task Force on Special Management of Cost of Living” meeting today.
In preparation for the impact of international LPG prices resulting from the Middle East war, which is expected to be reflected from May, the government has decided to expand the butane fuel tax reduction from the current 10% to 25% for two months starting from May 1 to June 30. This is expected to result in an additional reduction of approximately 31 won per liter.
Previously, the government also extended the fuel tax reduction on gasoline and diesel by 15% and 25%, respectively, to curb price increases in conjunction with the maximum price system for petroleum products.
A joint inspection team from multiple ministries that inspected over 5,700 gas stations nationwide uncovered a total of 99 violations, including the sale of fake oil, inadequate quantity, and sales method violations.
However, the National Tax Service’s inspection results showed that the oil companies’ shipments in March were at 92-136% of the previous year’s level, indicating no significant circumstances related to hoarding.
Additionally, the government plans to defer measures to improve the financial structure of airlines and postpone the payment of airport facility usage fees to ensure that the surge in fuel surcharges does not directly burden consumers.