Government-Party Price Measures Meeting... Hong Nam-ki "Considering Reduction of Fuel Tax and LNG Quota Tariff"

Public Utility Rates Frozen Until Year-End
Annual Inflation Maintained in Low 2% Range

Deputy Prime Minister for Economy Hong Nam-ki is attending the National Assembly's Public Accounts Committee hearing on the Ministry of Economy and Finance, the Bank of Korea, and others held at the National Assembly on the 21st, responding to questions from lawmakers. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Jeon Jin-young] The Democratic Party of Korea and the government have agreed to consider a plan to temporarily reduce fuel tax and LNG allocation tariffs.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated at the price stabilization party-government meeting held at the National Assembly this morning, "The Democratic Party has continuously raised issues regarding fuel tax and LNG allocation tariffs, so we will consider reducing them for a certain period." Hong cited the recent domestic gasoline price reaching the mid-1,700 won range, the highest in seven years, as the basis for this consideration.

Public utility fees will also be frozen until the end of the year. Hong said, "We will, in principle, freeze public utility fees until the end of the year, and manage agricultural and livestock products stably through supply and demand control or discount events. We have also included plans to strengthen raw material discount sales and supply support in the measures to ease corporate burdens."

He added, "We will promptly proceed with follow-up measures such as revising enforcement ordinances as soon as they are confirmed at today's party-government meeting and the economic ministers' meeting. We will do our best to ensure that the annual inflation rate is stably managed in the low 2% range."

Song Young-gil, leader of the Democratic Party who attended the meeting, said, "We will discuss not only short-term remedies but also practical measures regarding the overall energy price outlook. Even if oil prices decrease, it takes time for the effect to be felt, so we will prepare various comprehensive policies and detailed measures to shorten this period as much as possible."

Yoon Ho-jung, floor leader, added, "Considering that the economy of ordinary people is still difficult due to COVID-19, it is time to find active measures such as freezing public utility fees and expanding tax support. Since current inflation cannot be resolved in the short term, structural improvement measures such as diversifying overseas supply chains and enhancing price transparency must also be prepared."