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Gasoline prices rise nationwide as government rolls back tax cuts

Published: 01 Jan. 2023, 16:26

Gasoline is sold at 1,911 won ($1.51) per liter on Sunday afternoon in Seoul. Gasoline prices rose across the country on Sunday, the first day the government rolled back on tax cuts from 37 percent to 25 percent. [NEWS1]

Gasoline prices rose across the country on Sunday, the first day the government rolled back on tax cuts from 37 percent to 25 percent.

The average gasoline price was 1,540.6 won ($1.22) per liter on Sunday afternoon in Korea, up by 9.9 won or 0.6 percent compared to the previous day, according to Opinet, the Korea National Oil Corporation's oil price management system.

Prices had been falling for the last 16 weeks.

From Jan. 1, the tax on gasoline has been raised by 99 won from 516 won per liter to 615 per liter. The government increased tax cuts three times last year upon rising oil prices around the globe due to the Russia-Ukraine war. Last March, tax on gasoline was 820 won per liter.

“Tax cuts on gas have been brought down as gasoline prices seem to have stabilized compared to other types of gas,” the government said last month.

The government maintained the 37-percent tax cut on diesel, however, as prices remain high.

As of Sunday afternoon, diesel was sold at 1,721.1 won per liter across the country, down 0.7 won from the previous day. Prices have been falling for the last six weeks.

The government will keep overall tax cuts on gas until April 2023, but differently according to different types of gas.

BY YOON SO-YEON [[email protected]]