LPG Supply Price for 'Seomin Fuel' Also Frozen Amid May Fuel Tax Cut

May LPG Supply Price Frozen
Commercial Use 1,527.8 KRW/kg · Industrial Use 1,534.4 KRW/kg

Fuel Tax Cut Increased from Up to 20% to 30%
Gasoline 83 KRW/L · Diesel 58 KRW/L Decrease

A gas station in Seoul on the 27th of last month. At that time, the price of diesel surpassed that of gasoline, becoming a hot topic. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Moon Chaeseok] As the government plans to increase the fuel tax reduction rate from the current maximum of 20% to 30% starting next month, the price of liquefied petroleum gas (LPG), known as a relatively inexpensive "common people's fuel," will also be frozen.

E1 announced on the 30th that it will freeze the domestic liquefied petroleum gas (LPG) price next month. Accordingly, for propane, the prices for household and commercial use will remain at 1,527.8 KRW per kg, and for industrial use, 1,534.4 KRW per kg, the same as this month.

With the government's additional fuel tax reduction (34.15 KRW per kg) and sales surcharge reduction (20.55 KRW per kg) effective from the 1st of next month, the price of LPG for transportation (butane) will also decrease by 54.7 KRW per kg.

An E1 official explained, "Despite significant price factors arising from rising international LPG prices and exchange rates amid unstable international situations, we decided to freeze supply prices considering consumer burdens and to participate in the government's efforts to stabilize prices."

Meanwhile, following the government's expanded fuel tax reduction policy, gasoline is expected to see an additional reduction of 83 KRW per liter, and diesel 58 KRW per liter. There is about a two-week lag before the fuel tax reduction is reflected in actual gas station prices, but refiners have decided to immediately apply the tax reduction to approximately 760 company-operated gas stations nationwide. This is to accelerate the speed at which the common people feel the price reduction as much as possible.

However, general privately-owned gas stations, which make up most of the gas stations, are expected to lower prices only after exhausting the inventory supplied before the additional fuel tax reduction, so it may take some time before the effect of the additional fuel tax reduction appears.

Since the government abruptly increased the fuel tax reduction rate from 15% to 20% starting November 12 last year, the nationwide average gasoline price, which was around 1,810 KRW per liter just before the fuel tax reduction, dropped to 1,621 KRW per liter as of January 7.

This content was produced with the assistance of AI translation services.