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Gov't asks oil industry to refrain from price hikes ahead of tax adjustment

Published: 29 Apr. 2025, 13:53 Updated: 29 Apr. 2025, 14:44

A signboard at a gas station in Seoul shows gasoline and diesel prices on April 27. [YONHAP]

The Industry Ministry on Tuesday asked oil companies to refrain from drastic price hikes, as the government plans to scale back the fuel tax cut starting next month, officials said.

Last week, the government announced its decision to extend the fuel tax cut for an additional two months through the end of June, while reducing the tax discount on gasoline from 15 percent to 10 percent and trimming the 23 percent tax cut on liquefied petroleum gas to 15 percent.

During a meeting with officials of local oil firms, the Ministry of Trade, Industry and Energy urged them to refrain from raising prices beyond the extent of the reduced tax discount and asked for their cooperation on preventing a sharp rise in fuel prices.

Under the new measure, gasoline prices are expected to rise by 40 won per liter and diesel prices by 46 won per liter.

"Global oil prices have fallen recently, but uncertainty in the market remains high," senior ministry official Yoon Chang-hyun said. "The government will continue to work closely with the industry to ensure stable supply and prices."

Yonhap