US EditionKorea to expand fuel tax cuts; diesel from 10 to 25%, gasoline from 7 to 15%
South Korea raises fuel price caps and expands tax cuts to 15% on gasoline and 25% on diesel, extending relief through May to ease burdens amid Middle East energy disruptions.
- On March 26, South Korea announced it will raise a cap on fuel prices effective March 27 at midnight and expand fuel tax cuts to 15 percent from 7 percent on gasoline and to 25 percent from 10 percent on diesel, Finance Minister Koo Yun-cheol said.
- The prolonged Middle East conflict roils global energy markets and strains Asia's fourth-largest economy, with South Korea facing particular vulnerability due to heavy reliance on energy imports through the Strait of Hormuz, effectively closed since early March.
- Fuel taxes per liter will fall by 65 won to 698 won for gasoline and by 87 won to 436 won for diesel; Finance Minister Koo told reporters "Diesel is the most essential fuel for industry, logistics and everyday livelihoods."
- The measures target small and midsize businesses and vulnerable households affected by rising energy costs, with the fuel tax cut extended through May instead of expiring in April, as Minister Koo said "If the situation worsens, we plan to consider additional cuts."
- Fuel taxes can be reduced by up to 37 percent under current law, preserving escalation capacity if the Middle East conflict intensifies, as South Korea's history of adjustments since November 2021 reflects persistent vulnerability to external energy price shocks.
13 Articles
13 Articles
S. Korea to expand fuel tax cuts amid Middle East conflict
Government Expands Fuel Tax Cut... Gasoline Becomes 65 Won Cheaper Per L, Diesel 87 Won Cheaper Cuts from 7% to 15% for Gasoline and 10% to 25% for Diesel Additional Cuts Under Consideration if International Oil Prices Surge In response to the surge in international oil prices, the government has decided to significantly expand the fuel tax cut to lower the burden of fuel costs. Starting the 27th, the gasoline fuel tax
The ongoing conflict in the Middle East has increased uncertainty in the international crude oil supply, prompting various countries to implement corresponding measures. For example, the South Korean government decided to expand fuel tax reductions to further stabilize people's livelihoods, with gasoline and diesel tax reductions increased to 15% and 25% respectively. The Japanese government also released some of its strategic petroleum reserves…
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