Fluctuating Oil Prices... Choo Kyung-ho "Considering Extension of Fuel Tax Reduction Measures" (Comprehensive)

Deputy Prime Minister Choo Kyung-ho Chairs Price and Livelihood Inspection Meeting
"Considering Additional Extension Based on Future International Oil Price Trends"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is delivering opening remarks at the 'Price and Livelihood Inspection Meeting' held at the Government Seoul Office in Jongno-gu, Seoul on the 15th. Photo by Jo Yong-jun jun21@

The government has hinted at the possibility of further extending the fuel tax reduction policy, which is set to expire this October.

On the morning of the 15th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho chaired the 'Price and Livelihood Inspection Meeting' at the government complex in Jongno-gu, Seoul, stating, "In response to high volatility in international oil prices, we have extended the fuel tax reduction and oil price-linked subsidies until October." He added, "We will also consider additional extensions depending on future international oil price trends."

Deputy Prime Minister Choo explained, "To ensure stable oil prices, starting yesterday (the 14th), Korea National Oil Corporation and the Petroleum Management Service have jointly conducted on-site inspections at major gas stations nationwide." He continued, "We will continue to monitor price trends daily and cooperate with industry and related agencies to do our best to stabilize oil prices."

Deputy Prime Minister Choo mentioned the fuel tax reduction policy card because the recently fluctuating petroleum prices have re-emerged as a variable in inflation. According to Opinet, the oil price information service of the Korea National Oil Corporation, nationwide gasoline prices rose from 1,569.2 won in the first week of July to 1,638.83 won in the first week of August, and then to 1,744.94 won in the last week of the same month, an increase of 175.74 won over two months.

Notably, in August, petroleum prices fell by 11.0% compared to the previous year, a significant decrease from the 25.4% drop recorded last month. As the rate of price decline slowed, the base effect disappeared, causing the consumer price inflation rate, which had fallen to the 2% range, to jump back up to 3.4%.

Additionally, Deputy Prime Minister Choo stated, "Led by the Ministry of the Interior and Safety, we will actively cooperate with local governments to absorb as much of the factors causing price increases as possible through self-help efforts. In unavoidable cases, we will stagger or postpone the timing of price hikes or minimize the increase." He added, "We plan to evaluate the performance of local price stabilization management in the second half of the year and distribute 8 billion won in special treasury grants as financial incentives on a differentiated basis."

He further said, "For apples and pears, whose prices rose last month due to supply and demand instability, we will provide additional support for some costs such as freight charges starting next week to encourage timely shipment." He also announced, "We will supply an additional 20,000 sets of practical gift sets priced up to 20% cheaper than market prices."

Regarding chicken, he stated, "Out of the total 30,000 tons of tariff quota scheduled for introduction during the Chuseok period, 20,000 tons have already been introduced to the market." He pledged, "The remaining 10,000 tons will be swiftly introduced by early October." On pork, he explained, "In addition to the initially planned 15,000 tons of tariff quota, we will start procedures today to import an additional 15,000 tons to maximize supply before Chuseok."

He emphasized, "Starting today, in addition to the existing nine markets, a 40% refund event for Onnuri gift certificates will be held regularly until the end of the year at 21 seafood markets nationwide, including Daejeon Jungang Market and Daegu Chilseong Market." He stressed, "We will make every effort to execute the 80 billion won preliminary budget for promoting seafood consumption."

Meanwhile, Deputy Prime Minister Choo evaluated, "Thanks to policy efforts, the average price of 20 major seasonal products remains 6.0% lower than last year." He added, "The cost of the Chuseok ancestral rite table, consisting of 28 items, is also 4.8% lower compared to last year."