South Korea's Ministry of Finance announced an extension of the fuel tax reduction policy for two more months to alleviate the economic burden on consumers due to rising prices and slowing demand. The policy will now last until the end of June.
However, the tax reduction on gasoline will be narrowed from 15% to 10%, while the reduction for diesel and liquefied petroleum gas (LPG) will decrease from 23% to 15%. These adjusted rates will remain effective until June 30.
The Ministry stated that this partial adjustment was made considering recent global oil price trends, inflation, and the impact on government finances. The fuel tax was initially reduced in November 2021 to combat rising energy prices, with the government extending this measure several times and adjusting rates according to global energy market changes. This latest extension marks the 15th time the fuel tax relief plan has been prolonged.
