Key facts
- South Korea will extend its fuel tax cut by two months through November.
- The tax cut aims to ease price burdens on the public amid Middle East tensions.
- Gasoline will continue to receive a 15% tax reduction.
- Diesel and butane will continue to receive a 25% tax reduction.
South Korea's government announced on Friday, September 18, 2026, that it will extend its fuel tax cut by two months, through November. This measure is intended to alleviate the financial strain on the public caused by persistent fuel costs, exacerbated by ongoing tensions in the Middle East.
The decision was made during an economy-related ministers' meeting chaired by Finance Minister Koo Yun-cheol. The current tax reductions, which stand at 15 percent for gasoline and 25 percent for diesel and butane, were originally set to expire at the end of September. The extension aims to mitigate the impact of potential oil price volatility.
The ministry highlighted that larger tax cuts for diesel and butane were maintained due to their essential role in industrial, logistics, and everyday transportation activities.