Finance ministry extends fuel tax cuts through November amid oil price surge

The finance ministry on Friday extended its fuel tax reductions through the end of November to alleviate household burdens as international oil prices surged amid escalating tensions in the Middle East.

Deputy Prime Minister and Finance Minister Koo Yoon-cheol chaired an emergency economic meeting at the Government Complex Sejong, where officials approved keeping the gasoline tax cut at 15 percent while maintaining a deeper 25 percent reduction for diesel and butane. The measures, originally scheduled to expire at the end of September, were prolonged by two months.

To provide immediate relief during the upcoming Chuseok holiday, the government will lower fuel prices at highway service stations by 100 won per liter compared to levels on Sept. 17. The discount applies from Sept. 24 to Sept. 27.

Electric vehicle drivers will also see lower charging costs during daylight hours over the holiday weekend.

Koo noted that while South Korea's economy continues to show solid fundamentals with strong export growth and improving domestic consumption, the sharp rise in global crude prices has reintroduced significant uncertainty. Brent crude jumped from $90.1 per barrel on July 31 to $105.8 on Sept. 16, while WTI crude rose from $84.7 to $102.4 over the same period.

"Despite difficult external conditions including the Middle East conflict, our economy is demonstrating robust fundamentals," Koo said. "However, uncertainty surrounding the Middle East situation is expanding again as international oil prices rise sharply."

The minister emphasized that the government would maintain its emergency response system and work closely with refiners to monitor daily crude supply conditions.