Fuel Tax Cut Extended Until End of December; Gasoline Reduction Rate Lowered from 10% to 7%

The Ministry of Economy and Finance announced on the 22nd that the temporary fuel tax reduction will be extended for two more months, until December 31. However, the reduction rates will be lowered. The fuel tax cut for gasoline will decrease from the current 10% to 7%, while the rates for diesel and Liquefied Petroleum Gas (LPG) butane will be reduced from 15% to 10%.
The ministry explained, "After considering recent trends in international oil prices, inflation, and fiscal impact, we decided to gradually restore the fuel tax. However, only a partial rollback will be implemented to prevent a sudden increase in the public's financial burden."
With this measure, the tax burden will be reduced by 57 KRW per liter for gasoline, 58 KRW for diesel, and 20 KRW for LPG butane. However, compared to the current reduction (82 KRW for gasoline, 87 KRW for diesel, and 30 KRW for LPG butane) maintained until the end of this month, there will be an effective price increase of 25 KRW for gasoline, 29 KRW for diesel, and 10 KRW for LPG butane.


spring@fnnews.com Lee Bo-mi Reporter