South Korea Extends Fuel Tax Cuts to September Amid Mideast Tensions

South Korea's government has decided to extend its fuel tax reduction policy for an additional two months, through September 30. This measure was initially set to expire at the end of July.

The extension aims to mitigate the impact of fluctuating international oil prices. Recent escalations in tensions between the United States and Iran have contributed to increased volatility in the global oil market, prompting the government's decision.

The current tax reduction rates will be maintained. This means the fuel tax cut for gasoline will remain at 15%, while the reduction for diesel and liquefied petroleum gas (LPG) will continue at 25%. Including value-added tax, the current tax savings amount to 122 won per liter for gasoline, 145 won for diesel, and 51 won for butane.

This policy adjustment comes as diplomatic efforts to resolve the conflict between the U.S. and Iran have stalled due to disagreements, with Israel also reportedly uncooperative in the negotiations. The renewed instability in the Middle East is a key factor influencing the government's decision to provide continued relief to consumers.