The government will extend the fuel tax cut for two more months until the end of November to alleviate the burden on citizens from rising international oil prices. During the Chuseok holiday, fuel prices at 226 highway gas stations will be reduced by 100 won per liter, and electric vehicle charging fees will also be discounted during daytime hours.
On September 18, the government held an emergency economic meeting and a meeting of economic ministers at the Government Sejong Complex, chaired by Deputy Prime Minister and Minister of Finance Ku Yun-cheol, to discuss measures for livelihood stability.
As a result of this decision, the fuel tax cut, which was set to expire at the end of this month, will now last until November 30. The reduction rates will remain at 15% for gasoline and 25% for diesel and butane, maintaining the current levels. Notably, a higher reduction rate will be applied to diesel and butane, which are essential for industry and logistics, to ease fuel costs.
From September 24 to 27, during the Chuseok holiday, the Korea Expressway Corporation will lower fuel prices by 100 won per liter at 226 gas stations it manages, compared to prices on September 17. This initiative aims to share the burden of high oil prices with the public while meeting expectations for improved services at highway rest areas.
During the Chuseok period, when solar and other renewable energy supplies are abundant, electric vehicle charging fees will also be discounted. This measure is intended to pass on the benefits of expanded renewable energy to consumers.
The 10th maximum oil price, which will take effect at midnight on September 19, is set to be announced at 6 p.m. on the same day. Deputy Prime Minister Ku stated, "We will make a decision after comprehensively reviewing the international oil price situation and the burden on citizens."
This policy comes as uncertainties surrounding the Middle East have led to a significant increase in international oil prices. The price of Brent crude rose from $90.5 per barrel on August 31 to $105.8 on September 16. During the same period, West Texas Intermediate (WTI) increased from $85.8 to $102.4.
The government believes that there will be no major disruptions in energy supply for the time being, thanks to diplomatic efforts, diversification of import sources, and strategic oil stock swaps. However, it plans to operate a task force with the refining industry to monitor crude oil supply daily and take necessary actions promptly.
Deputy Prime Minister Ku acknowledged the solid fundamentals of the economy, citing increases in exports and improvements in domestic demand, but emphasized the need to remain vigilant against external uncertainties. He stated, "The government will not let its guard down and will maintain an emergency response system to ensure stable management of energy supply and prices, while implementing livelihood stability measures that citizens can feel."
* This article has been translated by AI.
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