Reductions of 15% on gasoline, 25% on diesel and 25% on butane to remain in place

A gas station at Mannam-ui Gwangjang in Seocho-gu, Seoul. [Yonhap]
A gas station at Mannam-ui Gwangjang in Seocho-gu, Seoul. [Yonhap]

The government has decided to extend its temporary fuel tax cuts by two months as global oil prices turn volatile again, pushing back the expiration date from the end of this month.

The Ministry of Economy and Finance announced Friday that the extension was decided at an emergency economic headquarters meeting chaired by Deputy Prime Minister Koo Yun-cheol, citing persistent instability in the Middle East and the need to ease the public's fuel costs while preserving policy room to respond to further shocks.

Under the extension, the current reduction rates — 15% on gasoline, 25% on diesel and 25% on butane — will remain in effect through the end of November.

Per-liter fuel tax rates, including a 10% value-added tax, stand at 698 won for gasoline, 122 won below the pre-cut level. Diesel is held at 436 won, down 145 won, and butane at 152 won, down 51 won.

To implement the extension, the government plans to submit amendments to the enforcement decrees of the Transportation, Energy and Environment Tax Act and the Individual Consumption Tax Act to a future Cabinet meeting before putting them into effect.


oskymoon@heraldcorp.com