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A gas station in Seoul on Nov. 8. /Yonhap

The government will extend temporary fuel tax cuts, which were scheduled to expire at the end of this month, by two months through the end of January next year. The move is aimed at easing the public's fuel cost burden by maintaining the current tax reduction rates of 15% for gasoline and 25% each for diesel and butane.

The Ministry of Finance and Economy announced the decision on Wednesday at an emergency economic ministers' meeting chaired by Deputy Prime Minister and Minister of Finance and Economy Lee Hyoung-il. 

The government decided to extend the fuel tax cuts in light of uncertainty surrounding the war in the Middle East and persistently high oil prices. The reduction rates will remain unchanged to preserve the government's capacity to respond to potential increases in oil price volatility.

Accordingly, fuel taxes per liter will remain at 698 won for gasoline, 436 won for diesel and 152 won for butane through Jan. 31 next year. These rates are 122 won, 145 won and 51 won lower, respectively, than before the tax cuts. The current reduction rates have been in effect since May this year.

The government plans to maintain higher tax reduction rates for diesel, which is essential for industrial and logistics operations, and butane, which is used as an affordable fuel for small trucks and other vehicles, than for gasoline.

To implement the extension, the ministry plans to submit proposed amendments to the Enforcement Decree of the Transportation, Energy and Environment Tax Act and the Enforcement Decree of the Individual Consumption Tax Act to the Cabinet for approval before putting them into effect.

                                                                                                               Lee Ji-hoon