Key facts
- South Korea will extend reduced fuel tax rates through September 30.
- The tax cuts include a 15% reduction for gasoline and 25% for diesel and butane.
- The decision is driven by geopolitical instability in the Middle East and potential oil price volatility.
- The measure aims to ease the public's energy cost burden.
South Korea will maintain reduced fuel tax rates through the end of September, the finance ministry announced Friday, as geopolitical tensions in the Middle East continue to fuel energy market volatility. The current tax reductions, which were set to expire at the end of July, will be extended through September 30. This includes a 15 percent reduction for gasoline and a 25 percent reduction for diesel and butane. The Ministry of Finance and Economy stated that the decision was made to allow for future fuel tax adjustments in response to further volatility in oil prices. The measure is expected to help alleviate the public's energy cost burden, particularly for diesel used in logistics and butane used for small trucks.