Gasoline Tax Cut of 15% and Diesel Tax Cut of 25% Extended by Two Months Until July

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[Financial News] The government plans to keep the current fuel tax cut rate in place after June. As a result, the 15% cut for gasoline and the 25% cut for diesel, which were reduced in March to match the second ceiling-price application, will be extended by two months until July 31. Gasoline and diesel prices will be lowered by 122 won and 145 won per liter, respectively.
On the 21st, the government held a meeting of the Ministerial Task Force on Special Management of Consumer Prices and discussed fuel tax operations after June, including the measures above.
The fuel tax cut introduced in March is set to end on the 30th. Accordingly, the government has decided to strengthen the tax cut again for gasoline and diesel.
With the tax cut rate extended, the measure is expected to ease the public's fuel cost burden and help stabilize prices. Kim Wansu, Director of the Environment and Energy Taxation Division at the Ministry of Finance and Economy, explained, "As the ceiling-price system is being implemented, we are combining it with fuel tax cuts to ease the public's fuel cost burden and applying a larger reduction to diesel, which is especially essential for industry and logistics."
The government believes the fuel tax cuts are being sufficiently reflected in actual consumer prices. Kang Giryong, Deputy Minister at the Ministry of Finance and Economy, said, "The ceiling price is set each month, and the refinery supply price is calculated by taking into account the refinery survey price and the fuel tax cut." He added, "Once refiners set the supply price, gas stations reflect it in the final retail price, and in this structure, the reduction is fully passed on to retail prices."
Going forward, the government plans to revise the Enforcement Decree of the Transportation, Energy and Environment Tax Act and submit it to the State Council of South Korea for discussion next week.
syj@fnnews.com Seo Young-joon Reporter