Fuel tax cut to be extended by 2 months with adjustments

The finance ministry said Wednesday it will extend the tax cut on fuel by another two months with some adjustments amid the ongoing Middle East crisis.

Under the decision, South Korea will apply a 15 percent discount on gasoline consumption and a 23 percent cut on diesel and liquefied petroleum gas, according to the Ministry of Economy and Finance.

South Korea has been applying a 20 percent discount on gasoline consumption and a 30 percent discount on diesel and liquefied petroleum gas, which were set to expire at the end of this month.

"The decision was aimed at reducing the scope of the discount by taking recent energy and inflation trends, along with their impact on the finances, into consideration," the ministry said in a statement.

The updated measure will be implemented Nov. 1 and will run through the end of this year.

The government began implementing a fuel tax cut scheme in 2021 and has extended it since then, with the reduction rate being adjusted in accordance with global energy prices.

South Korea depends on imports for most of its energy needs, and rising global oil prices have caused inflationary pressures to flare up in the country. (Yonhap)