The temporary reduction of fuel tax, scheduled to end at the end of this month, will be extended for another two months.
The Ministry of Economy and Finance noted on the 14th that it has decided to extend the temporary reduction of the fuel tax, lowering gasoline by 10% and diesel and liquefied petroleum gas (LPG) by 15%, until the end of October, considering fluctuations in international oil prices and the burden of fuel costs on citizens.
The current rise in international oil prices is acting as a factor in the increase in consumer prices. Earlier, the Korea Development Institute (KDI) mentioned uncertainties in international oil prices and projected that the consumer price increase rate would be 2.0% this year. This is a figure that has been revised upward by 0.3 percentage points compared to the forecast three months ago.
As a result of this measure, the price reduction effects will be maintained for an additional two months for ▲gasoline 82 won/liter (ℓ) ▲diesel 87 won/liter (ℓ) ▲liquefied petroleum gas (LPG) butane 30 won/liter (ℓ).
The enforcement ordinances for the 'Traffic, Energy, and Environment Tax Act and the Special Consumption Tax Act' to extend the temporary reduction of the fuel tax will go through the Cabinet meeting on the 26th and will be implemented from September 1.