South Korea has extended its fuel tax cuts until the end of September to help ease energy costs for consumers and businesses amid renewed geopolitical tensions in the Middle East.
SEOUL: South Korea will maintain its fuel tax cuts through September 30, the Ministry of Economy and Finance announced on Friday, extending measures aimed at reducing energy costs for households and businesses.
The current tax reductions, originally due to expire at the end of July, will remain unchanged. Motorists will continue to receive a 15% tax cut on gasoline, while diesel and butane will retain a 25% reduction.
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According to the ministry, the extension is intended to ease the financial burden on consumers while helping stabilise fuel prices amid renewed geopolitical tensions in the Middle East, which have raised concerns over global energy markets.
Officials said the measure would particularly benefit the logistics sector by keeping diesel costs lower for freight transport. It is also expected to support small business operators and commercial drivers who rely on butane-powered vehicles.
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The government noted that maintaining lower fuel taxes will help limit increases in transport and distribution costs, reducing the impact of higher global oil prices on the wider economy.
South Korea has repeatedly adjusted fuel tax rates in recent years as part of efforts to cushion consumers from volatile international energy prices. The latest extension reflects the government’s continued focus on managing inflationary pressures while ensuring stable energy supplies.
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The decision comes as global markets closely monitor developments in the Middle East, where geopolitical uncertainty has contributed to fluctuations in crude oil prices. By extending the fuel tax cuts, the government aims to provide short-term relief while monitoring international market conditions before deciding on any further policy changes.
The ministry said the temporary measure would remain in effect until September 30, after which authorities will review economic conditions and energy price trends before determining whether additional extensions are necessary.
