The temporary fuel tax cut will continue for another two months. The government decided to extend the cut, which had been due to end at the end of this month, through the end of January next year.
The Ministry of Economy and Finance on the 11th announced its decision, 'Fuel Tax Operation Plan from December Onward.' The decision came at an emergency economic ministers' meeting chaired by Deputy Prime Minister and Finance and Economy Minister Lee Hyeong-il.
The cut rates are the same as now: 15% for gasoline and 25% each for diesel and liquefied petroleum gas (LPG) butane. The period of application runs from December 1 to January 31 next year.
Reflecting the cut, the tax per liter is 698 won for gasoline, 436 won for diesel and 152 won for butane. That is 122 won less for gasoline, 145 won less for diesel and 51 won less for butane than without the cut. The amounts include 10% value-added tax.
The cut rates by fuel type have been kept unchanged since May this year. Diesel is an essential fuel at industrial and logistics sites. Butane is mainly used by vehicles that support ordinary people's livelihoods, such as small trucks. The government plans to keep applying higher cut rates than for gasoline to these two fuels.
The extension reflects uncertainty surrounding the Middle East war and the possibility of oil price fluctuations. The government explained that it needs to ease the immediate fuel cost burden while leaving room to respond when oil price volatility grows in the future.
The government plans to put the amendments to the enforcement decrees of the Transportation, Energy and Environment Tax Act and the Individual Consumption Tax Act before the Cabinet meeting and then implement the extension.