Politics · South Korea · 43 mins ago
South Korea extends fuel tax cuts through January 31
South Korea’s government extended its temporary fuel tax cuts for two months, through January 31.
The current reductions will stay at 15% for petrol and 25% for diesel and butane.
Compared with having no cut, the tax per litre is 122 won lower for petrol, 145 won lower for diesel and 51 won lower for butane.
The government says the extension is intended to ease fuel costs for the public while oil prices remain high.
It cited uncertainty over the Middle East conflict and the possibility of further changes in international oil prices.
Diesel and butane have larger cuts because they are important for industry, transport and smaller trucks.
The government plans to put changes to the relevant laws’ enforcement decrees before the Cabinet to carry out the extension.
South Korea will extend its fuel tax cuts for two months, through January 31, 2027.
The current cuts will remain at 15% for gasoline and 25% for diesel and butane LPG.
The government said the extension is intended to ease fuel costs amid uncertainty over the Middle East and high, volatile international oil prices.
It also cited concerns that ending the cuts could increase household costs and inflation.
The decision was announced on November 11 at a meeting chaired by Finance and Economy Minister Lee Hyoung-il.
- Who
- South Korea’s government, led on this decision by Finance and Economy Minister Lee Hyoung-il.
- What
- It extended fuel tax cuts for two months, keeping the current reduction rates.
- When
- Announced on November 11, 2026. The cuts will apply through January 31, 2027.
- Where
- South Korea.
- Why
- The government cited high and volatile oil prices and the need to ease fuel costs. It also warned that ending the cuts could add to inflationary pressure.
This story does not have two clearly opposing sides.
The government began maintaining the current fuel tax reduction rates.
The government announced a two-month extension of the fuel tax cuts.
The extended tax cuts are scheduled to end.
- Extension period
- Two months, through January 31, 2027
- Gasoline tax reduction
- 15%
- Diesel tax reduction
- 25%
- Butane LPG tax reduction
- 25%
- Tax savings per liter
- 122 won for gasoline, 145 won for diesel and 51 won for butane LPG
3 sources
What people are saying
We decided to extend the fuel tax cut to ease the public’s fuel costs.
The effects of accumulated price increases mean that people still feel prices are high.