Government Extends Fuel Tax Cuts by Two Months Through End of January (Comprehensive)

The government will extend the temporary fuel tax cuts, which are scheduled to expire at the end of this month, by two months. The size of the cuts will remain unchanged.

The Ministry of Finance and Economy announced the “Plan for Fuel Tax Measures After November” at an emergency economic ministers’ meeting chaired by Deputy Prime Minister and Finance and Economy Minister Lee Hyeongil on the 11th.

The government has maintained the current level of fuel tax cuts since the outbreak of the Middle East war in March to ease the burden of fuel costs on the public.

The existing fuel tax cuts were due to expire at the end of this month, but have been extended by two more months, through the end of January. The cuts remain unchanged by fuel type: 15% for gasoline and 25% for diesel and butane.  

Compared with prices before the cuts, the price per liter is 698 won for gasoline, down 122 won. Diesel is 436 won, down 145 won, and butane is 152 won, down 51 won.

Fuel taxes are paid to the government upfront by oil refiners when petroleum products leave their factories. Cutting these taxes also helps curb increases in consumer prices.

The Ministry of Finance and Economy plans to submit amendments to the Enforcement Decree of the Traffic, Energy and Environment Tax Act and the Enforcement Decree of the Individual Consumption Tax Act to a Cabinet meeting at a later date.

This content was produced with the assistance of AI translation services.