Seoul: South Korea will extend its fuel tax cut for an additional two months through the end of June in an effort to ease the financial burden on consumers amid rising prices and slowing demand, the finance ministry said Tuesday. Under the extended policy, the current 15 percent tax cut on gasoline will be rolled back to 10 percent, while the tax cut on diesel and liquefied petroleum gas (LPG) will be reduced from 23 percent to 15 percent, according to the ministry. The adjusted fuel tax rates will remain in effect until June 30. The ministry said the partial rollback was decided in consideration of recent trends in global oil prices, inflation and the impact on government finances.
According to Yonhap News Agency, South Korea first introduced the fuel tax cut in November 2021 as a response to rising energy prices. The government has since extended the measure multiple times, adjusting the rates in accordance with changes in the global energy market. This latest move marks the 15th extension of the fuel tax relief program.
South Korea, which depends heavily on imports for energy, is particularly vulnerable to external price shocks, which often lead to domestic inflation. The government said it will continue to monitor market conditions closely and take appropriate steps to stabilize consumer prices.