The government has extended the fuel tax cut to the end of June as oil prices fluctuate with escalating tension in the Middle East.
Finance Minister Choi Sang-mok said Monday the government will review an extension of the tax cut on fuel consumption in an effort to curb inflation and ease economic burdens on the people.
The finance ministry announced a set of measures on Friday to stabilize prices ahead of next month’s Chuseok holiday.
As local oil refiners wrapped up a lucrative year boosted by strong crude prices worldwide, the government is pursuing harsher regulations, fueling a backlash from the industry.
The latest bill passed by National Assembly on Tuesday will allow the government to cut fuel taxes up to 55 percent, up from the current limit of 37 percent, until the end of 2024.
The fuel tax cut will be expanded to 37 percent from the current 30 percent starting July.
Gasoline is retailing at 2,012.33 won ($1.6) per liter, up 1.33 won in a day and near an all-time high. In Seoul, the price is 2,088.42 won per liter, up 2.33 won.
Divers line up at a gas station in Yongin, Gyeonggi, Sunday. A fuel tax cut of 30 percent was effective May 1 and will be in place until the end of July.
According to Korea National Oil Corp., the average price of a liter of gasoline is down 0.57 won compared to the last week of March to 1,993.97 won. The average price in Seoul dropped 2.25 won to 2,052.74 during the same period
The fuel tax cut may be increased to 30 percent from the current 20 percent as the war in Ukraine threatens to drive up the already high consumer prices. FInal decision to be made on April 5.
Korea JoongAng Daily Sitemap