Starting Today, Gasoline Drops by 83 Won and Diesel by 58 Won... Fuel Tax Cut Expanded to 30%

[Asia Economy Sejong=Reporter Son Seonhee] From May 1, the price of gasoline will decrease by 83 won per liter (L), diesel by 58 won, and liquefied petroleum gas (LPG) butane by 21 won per liter, respectively. This is due to the expansion of the fuel tax reduction rate from the existing 20% to 30%.

According to the Ministry of Economy and Finance on the 1st, for three months from that day until the end of July, the fuel tax (including 10% value-added tax) imposed on gasoline will be reduced from 656 won per liter to 573 won. Diesel will decrease from 465 won to 407 won, and LPG butane from 163 won to 142 won, respectively.

As international oil prices soared above $100, the government had been reducing the fuel tax by 20% since mid-November last year. However, due to the aftermath of Russia's invasion of Ukraine and other factors, oil prices have not stabilized, effectively offsetting the effects of the fuel tax reduction. Therefore, the government decided to cut the fuel tax by an additional 10 percentage points. This is the largest reduction ever.

However, it may take about 1 to 2 weeks for the 30% reduced fuel tax to be reflected in consumer sales prices. This is because existing inventory at gas stations must be depleted. The government plans to ensure that the fuel tax reduction volume is quickly supplied to major gas stations nationwide so that it can be applied promptly.

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