The government has decided to extend the fuel tax cut for an additional two months until September and will launch a major discount event for all agricultural and marine products in July and August to stabilize prices. Additionally, it will begin improving supply chain structures for certain economic security items to reduce dependency on specific countries.
Koo Yoon-cheol, Deputy Prime Minister and Minister of Economy and Finance, held a meeting on July 24 at the Government Seoul Complex with the special task force on managing the cost of living. The meeting was convened amid renewed tensions between the U.S. and Iran, which have increased uncertainties in international oil prices and supply chains. Participants reviewed the progress of price stabilization measures and discussed future initiatives.
In light of market conditions, including international oil prices and supply and demand trends, the government will determine the eighth maximum price for petroleum products. Considering the burden on citizens, the fuel tax cut will be extended at the current level until September 30. This extension is expected to result in a reduction of 122 won per liter for gasoline, 145 won for diesel, and 51 won for butane.
To compensate for the losses incurred by refiners due to the maximum price system, a financial support guideline will be established, and the support amount will be finalized after review by the maximum price settlement committee based on production costs.
Measures to stabilize the cost of living will also be implemented. Starting this month, a large-scale discount event for all agricultural and marine products will be conducted, with the number of participating companies increasing from 75 to 90.
Additionally, the government plans to urgently import 200 million fresh eggs and 2,000 tons of mackerel from Norway to increase supply and will enhance on-site inspections. Furthermore, a 'Chuseok Cost of Living Stabilization Plan' will be announced in September to further address public concerns about price stability and burden reduction.
For certain key items with high dependency on specific countries, the government will pursue phased responses tailored to the characteristics of each item and improve supply chain structures in the second half of the year.
Support for domestic production will be linked to tax incentives and subsidies, and the government will increase stockpiles of essential industrial and consumer goods. It is also considering expanding stockpiles of crude oil, naphtha, and fertilizer-grade urea, as well as piloting new stockpiling models for vehicle urea.
For items that are difficult to produce or stockpile domestically, the government will support the establishment of overseas production bases and promote diversification of import sources. Additionally, a supply chain early warning system will be developed to enable coordinated responses across government agencies.
Finally, to ensure that tariff quotas lead to actual reductions in consumer prices, joint inspections will be conducted in the second half of the year for pork, chicken, mackerel, and food ingredients.
* This article has been translated by AI.
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