South Korea will extend its temporary fuel tax cuts through January 31, 2027, keeping gasoline taxes 15% lower and diesel and LPG butane taxes 25% lower. The reduced rates will apply after the current measure was due to expire on November 30, with the government citing uncertainty in the Middle East and volatile international oil prices.
After the cuts, fuel taxes will be 698 won per liter for gasoline, 436 won for diesel and 152 won for butane, representing savings of 122 won, 145 won and 51 won respectively against standard rates. The extension still requires revisions to the relevant enforcement decrees, which the government plans to submit to the Cabinet.