The government will apply a 0% allocated tariff rate on liquefied natural gas (LNG) starting in the second half. For liquefied petroleum gas (LPG) and crude oil for LPG production, the 0% allocated tariff rate applied in the first half will be extended through the second half. (☞[Exclusive] Government reviewing deferral of crude oil and LPG "import tariff" imposition… "Responding to Middle East-driven high inflation")
An allocated tariff is a system that applies a rate lower than the basic rate to import volumes of specific items. The basic rate for LNG, LPG, and crude oil for LPG production is 3%. Previously, the government imposed an LNG allocated tariff of 0% in the first quarter and 2% in the second quarter. For LPG and crude oil for LPG production, a 0% allocated tariff was imposed throughout the first half. The move is intended to curb inflation stemming from the Middle East war.
On the 18th, the government, chaired by Deputy Prime Minister and Minister Koo Yun-cheol of the Ministry of Economy and Finance, held a meeting of the "task force for special management of livelihood prices" and announced price stabilization measures that include these steps.
The government also decided to extend or newly apply allocated tariffs in the second half to a total of 22 items in the agricultural sector. A 5% allocated tariff on three types of fruit—bananas, pineapples, and mangoes—will be extended through Aug. 15. In addition, the reduced allocated tariffs applied in the first half to 10 food ingredients will remain in place in the second half. They are egg products (0%), frozen fruit (5%), crushed pineapple (15%), other fruit (15%), fruit cocktail (15%·20%), apple concentrate (15%), cocoa powder (0%), and sunflower seed oil (0%).
Food ingredients newly subject to allocated tariffs in the second half number seven, including grape concentrate (0%), other fruit juice (20%), grapefruit and lemon concentrate (0%·20%), peach and pineapple juice (20%), and malt extract (0%). Two feed ingredients, including palm kernel cake (0%) and modified potato starch (0%), will also newly receive allocated tariffs.
Meanwhile, the fuel tax cut (15% for gasoline, 25% for diesel) will remain in place as scheduled through July 31.