The government will expand fuel tax cuts on liquefied petroleum gas (LPG) butane used mainly by lower-income households, anticipating that international LPG price swings tied to the Middle East war will be more fully reflected starting next month.
Deputy Prime Minister and Minister of the Ministry of Finance and Economy Koo Yun-cheol announced the plan on the 23rd at a meeting of the interagency task force on special management of cost-of-living prices, releasing a set of measures for items under special monitoring.
The government has operated a public suggestion channel since February to gather views on price pressures. It received 117 proposals, with respondents citing food, energy and housing as the biggest burdens, in that order.
Reflecting those suggestions, the government said it is implementing steps including tougher penalties for unfair pricing. Starting next month, it will widen fuel tax cuts for LPG expected to rise in price. The tax cut on butane, widely used by lower-income households for small trucks and other vehicles, will increase to 25% from 10%. The government expects savings of 31 won per liter. The cut will run from the first day of next month through June 30.
After international oil prices rose following the Middle East war and gasoline prices topped 2,000 won per liter, the government said it has tempered price increases since last month’s 13th by introducing a maximum price system for petroleum products and expanding fuel tax cuts. A fourth maximum price, scheduled to be announced on the 24th, will be set by considering international oil trends along with market impact and the public’s burden, it said.
The government also moved to stabilize prices for key food items. It will provide 32 billion won in discounts for agricultural, livestock and fisheries products through June, and will strengthen efforts to curb grocery costs through tariff-rate quotas and import diversification. It will apply tariff-rate quotas to 22 food inputs, including processed egg products, coffee and cocoa beans, and will encourage alternative packaging by easing packaging-material regulations. It plans to wrap up collusion cases involving eggs, flour and starch syrup in the first half of this year.
For raw materials and consumer goods with supply concerns, including naphtha and urea and urea solution, the government said it is responding with measures such as bans on hoarding and emergency supply-demand adjustments. Naphtha prices remain elevated compared with levels before the Middle East war, it said. The government has secured 2.1 million tons of naphtha from Oman and Saudi Arabia and will begin bringing it in sequentially from the end of this month.
Urea and urea-solution inventories remain relatively stable, but retail prices for vehicle urea solution have edged up, the government said. To address urea shortages at some companies, it will preemptively release public stockpiles and pursue a program to support the price gap for vehicle urea.
The government also issued a notice banning hoarding of syringes after finished-product shipment prices jumped 20% due to supply concerns and higher raw material costs. It formed 35 inspection teams to check for hoarding and other violations and to stabilize distribution, it said.
Measures were also announced for service items such as private academy fees and telecom bills. Authorities found 2,763 cases of overcharging, including excessive tuition and other fees, and imposed a total of 1.04 billion won in fines. The government said it will create a new penalty to recover unjust gains and raise whistleblower rewards tenfold.
Household telecom burdens are easing overall, but some users limit usage due to concerns about extra charges after using up included data or voice minutes, the government said. It will include a bill-protection option in all data plans and provide additional voice and text allowances for those 65 and older.
With jet fuel prices surging due to the Middle East war, fuel surcharges on domestic and international routes have risen at South Korean airlines, the government said. To prevent airline difficulties from being passed on to consumers, it will seek to defer financial-improvement measures and also pursue deferrals for airport facility-use fees and slot recoveries.
Deputy Prime Minister and Minister of the Ministry of Finance and Economy Koo Yun-cheol announced the plan on the 23rd at a meeting of the interagency task force on special management of cost-of-living prices, releasing a set of measures for items under special monitoring.
The government has operated a public suggestion channel since February to gather views on price pressures. It received 117 proposals, with respondents citing food, energy and housing as the biggest burdens, in that order.
Reflecting those suggestions, the government said it is implementing steps including tougher penalties for unfair pricing. Starting next month, it will widen fuel tax cuts for LPG expected to rise in price. The tax cut on butane, widely used by lower-income households for small trucks and other vehicles, will increase to 25% from 10%. The government expects savings of 31 won per liter. The cut will run from the first day of next month through June 30.
After international oil prices rose following the Middle East war and gasoline prices topped 2,000 won per liter, the government said it has tempered price increases since last month’s 13th by introducing a maximum price system for petroleum products and expanding fuel tax cuts. A fourth maximum price, scheduled to be announced on the 24th, will be set by considering international oil trends along with market impact and the public’s burden, it said.
The government also moved to stabilize prices for key food items. It will provide 32 billion won in discounts for agricultural, livestock and fisheries products through June, and will strengthen efforts to curb grocery costs through tariff-rate quotas and import diversification. It will apply tariff-rate quotas to 22 food inputs, including processed egg products, coffee and cocoa beans, and will encourage alternative packaging by easing packaging-material regulations. It plans to wrap up collusion cases involving eggs, flour and starch syrup in the first half of this year.
For raw materials and consumer goods with supply concerns, including naphtha and urea and urea solution, the government said it is responding with measures such as bans on hoarding and emergency supply-demand adjustments. Naphtha prices remain elevated compared with levels before the Middle East war, it said. The government has secured 2.1 million tons of naphtha from Oman and Saudi Arabia and will begin bringing it in sequentially from the end of this month.
Urea and urea-solution inventories remain relatively stable, but retail prices for vehicle urea solution have edged up, the government said. To address urea shortages at some companies, it will preemptively release public stockpiles and pursue a program to support the price gap for vehicle urea.
The government also issued a notice banning hoarding of syringes after finished-product shipment prices jumped 20% due to supply concerns and higher raw material costs. It formed 35 inspection teams to check for hoarding and other violations and to stabilize distribution, it said.
Measures were also announced for service items such as private academy fees and telecom bills. Authorities found 2,763 cases of overcharging, including excessive tuition and other fees, and imposed a total of 1.04 billion won in fines. The government said it will create a new penalty to recover unjust gains and raise whistleblower rewards tenfold.
Household telecom burdens are easing overall, but some users limit usage due to concerns about extra charges after using up included data or voice minutes, the government said. It will include a bill-protection option in all data plans and provide additional voice and text allowances for those 65 and older.
With jet fuel prices surging due to the Middle East war, fuel surcharges on domestic and international routes have risen at South Korean airlines, the government said. To prevent airline difficulties from being passed on to consumers, it will seek to defer financial-improvement measures and also pursue deferrals for airport facility-use fees and slot recoveries.
* This article has been translated by AI.
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