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A gas station at the Mannamui Gwangjang service area in Seocho-gu, Seoul. / Yonhap

As international crude oil prices surge due to the reignited Middle East conflict, the government will extend the temporary fuel tax cut through the end of November.

According to the Ministry of Economy and Finance on the 18th, it was decided during a meeting of economic ministers and the emergency economic task force, presided over by Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol, to extend the temporary fuel tax cut for two months.

Accordingly, the fuel tax cuts of 15% on gasoline and 25% on diesel and butane, which were slated to expire at the end of this month, will remain in effect through late November. The per-liter fuel tax, including 10% value-added tax, remains lowered by 122 won to 698 won for gasoline, and by 145 won and 51 won to 436 won and 152 won for diesel and butane, respectively.

Officials explained that the decision to extend the current tax cuts was made to ease the fuel cost burden on the public amid persisting instability in the Middle East, while also reserving policy bandwidth to respond to potential market volatility ahead.

An official from the Ministry of Economy and Finance stated, "We will alleviate the public's fuel cost burden by extending the fuel tax cut," adding, "We maintained a relatively higher reduction rate for diesel, which is essential for industry and logistics, as well as butane, widely used as fuel for small trucks and everyday livelihoods."

To enact the extension, the ministry plans to push forward amendments to the enforcement decrees of the Transportation, Energy, and Environment Tax Act and the Individual Consumption Tax Act, bringing them before a cabinet meeting in due course.

Meanwhile, taking into comprehensive account recent global oil price conditions and the public's cost burden, the government decided to implement its 10th petroleum price ceiling system starting on the 19th and announce the caps at 6:00 p.m. today.

Deputy Prime Minister Koo remarked, "Uncertainties surrounding the Middle East are widening once again, with international oil prices jumping sharply in recent days," adding, "Without lowering our guard, we will sustain the emergency response posture and do our utmost to ensure the stable management of energy supply, demand, and prices."

                                                                                                           Seo Byung-joo