Fuel Tax Cut Extended Until End of October
10% Reduction for Gasoline, 15% for Diesel and LPG
The government will extend the fuel tax reduction, which was scheduled to end at the end of this month, until the end of October.
The Ministry of Economy and Finance announced on August 14 that "the amendments to the Enforcement Decree of the Transportation, Energy, and Environment Tax Act and the Enforcement Decree of the Individual Consumption Tax Act, which include these measures, will be implemented starting September 1 after passing through the Cabinet meeting and other procedures."
The fuel tax reduction rates will remain unchanged until the end of October. The rate for gasoline is 10%, and for diesel and liquefied petroleum gas (LPG) butane, it is 15%.
Currently, the fuel tax is 738 won per liter for gasoline, 494 won per liter for diesel, and 173 won per liter for butane.
The fuel tax reduction was first implemented in November 2021 in response to the spread of the COVID-19 pandemic and the sharp rise in international oil prices. Since then, the measure has been extended a total of 17 times, in increments of 2 to 6 months.
To stabilize consumer prices, the government expanded the fuel tax reduction rate for gasoline and diesel to as much as 37% starting in July 2022, but has gradually reduced the rate while extending the sunset deadline since last year.
The government's decision to extend the fuel tax reduction, which was set to expire at the end of this month, by an additional two months takes into account several factors: the uncertainty of oil prices both domestically and internationally, as well as the financial burden on citizens from fuel costs.
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