The government has decided to extend the temporary reduction of fuel tax until the end of April. This is the 14th extension since November 2021.
The government noted on the 6th, "We plan to extend the temporary reduction of fuel tax, which is scheduled to end on Feb. 28, by an additional two months." To this end, the government will announce proposed amendments to the enforcement decrees of the Traffic, Energy, and Environment Tax Act and the Special Consumption Tax Act.
The government said, "We considered both domestic and international oil price trends and the burden of fuel costs on the public," adding that it expects the measure to contribute to easing citizens' fuel expenses.
According to the government, the temporary reduction of fuel tax has resulted in a price reduction effect of 122 won per liter for gasoline. For diesel, the price reduction effect is 133 won, and for liquefied petroleum gas (LPG) butane, it is 47 won.
The proposed amendments are expected to take effect on the 1st of next month after going through legislative announcement, consultations with related ministries, Vice Minister meetings, and Cabinet meetings.