Korea to extend fuel tax cut by another 2 months

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Korea to extend fuel tax cut by another 2 months

Published: 06 Feb. 2025, 17:50

Prices of gasoline and diesel are displayed at a gas station in Seoul on Feb. 2. [NEWS1]

The government will extend its fuel tax cut for two more months through April in a bid to alleviate the financial burden on consumers, the Finance Ministry said Thursday.

Under the extended policy, the government will maintain a 15 percent tax reduction on gasoline and a 23 percent cut on diesel and liquefied petroleum gas, the ministry said.

The updated measures will remain in place until April 30, the ministry said.

Korea first introduced the fuel tax cut scheme in November 2021 and has extended it several times, adjusting the reduction rates based on global energy market conditions.

This marks the 14th extension.

As Korea relies heavily on imports for its energy needs, rising global oil prices have fueled inflationary pressures, prompting the government to take pre-emptive action.

Yonhap