South Korea to Extend Fuel Tax Cut by 2 Months

The South Korea's finance ministry said Wednesday it will extend the tax cut on fuel for automobiles by another two months until the end of October as concerns linger over the Middle East crisis. South Korea has been applying a 20% discount on gasoline consumption and a 30% discount on diesel and liquefied petroleum gas consumption, which were supposed to expire at the end of this month. "Amid the resurgence of tension in the Middle East, the volatility of global oil prices has increased, which may place additional burdens on the people," Finance Minister Choi Sang-mok said during a meeting with economy-related ministers. While the country previously applied a 25% and a 37% cut on gasoline and diesel prices, respectively, the ministry decided to adjust the rate in July, citing dwindling tax revenues, among other reasons. The government began implementing a fuel tax cut scheme in 2021 and has extended it since then, with the reduction rate being adjusted in accordance with global energy prices. Source: Q atar News Agency