The government will extend the temporary fuel tax cut, which was set to end at the end of this month, for two months until the end of July. The current fuel tax cut rates—15% for gasoline and 25% for diesel—will be maintained.
The Ministry of Finance and Economy held a task force (TF) meeting of related ministers for special management of consumer prices on the 21st and announced this fuel tax operation plan.
Accordingly, the 15% cut in the gasoline fuel tax and the 25% cut in the diesel fuel tax will remain in place through July 31. Compared with the pre-cut tax rates, the price reduction effect is 122 won per liter (L) for gasoline and 145 won for diesel.
The government first implemented the fuel tax cut at the end of 2021 to ease the burden on low- and middle-income people caused by a surge in international oil prices. Since then, it has continuously extended the fuel tax cut period in consideration of price and exchange rate trends. Recently, it has expanded the extent of the fuel tax cut in response to the Middle East situation.