Finance ministry extends fuel tax cuts through September

The finance ministry said it is extending temporary reductions on fuel taxes for two months. The measure pushes the expiration date for the elastic tax rate cuts from July 31 to Sept. 30, covering gasoline, diesel and similar alternative fuels.

The extension comes as recent increases in domestic and international oil prices have heightened the need to reduce the burden of fuel expenses on citizens, the ministry said.

President Lee Jae-myung signed the revised enforcement decree of the Traffic, Energy and Environment Tax Act on July 30, ordering it to take effect immediately.

Under the extended policy, the tax reduction rates will remain at 15 percent for gasoline and 25 percent for diesel and LPG butane. These cuts keep prices down by 122 won per liter for gasoline, 145 won for diesel and 51 won for LPG butane compared to pre-reduction levels.

Deputy Prime Minister and Finance Minister Koo Yun-cheol discussed operational plans for fuel taxes beyond August during a special task force meeting on living costs and prices.