South Korea is set to implement a significant expansion of its temporary fuel tax cut, aiming to alleviate financial pressures on consumers amidst ongoing geopolitical tensions in the Middle East, as announced by the finance ministry on Thursday.
As part of enhanced support for the public, the existing fuel tax reduction – 7 percent on gasoline and 10 percent on diesel – will be increased to 15 percent and 25 percent, respectively.
This measure, initially scheduled to conclude in April, will now be extended until the end of May, according to the ministry’s announcement.
Consequently, fuel taxes per liter, inclusive of value-added tax, will decrease by 65 won ($0.04) to 698 won for gasoline and by 87 won to 436 won for diesel.
This decision is strategically designed to mitigate the impact of rising oil prices and provide crucial support to small and medium-sized enterprises (SMEs) and vulnerable households adversely affected by the prolonged geopolitical instability.
