Oil Industry "Striving to Feel the Effect of Fuel Tax Reduction"

[Asia Economy Reporter Jeong Dong-hoon] The Korea Petroleum Association (KPA) announced that the domestic refining industry is making every effort to actively respond to the government's fuel tax reduction policy so that the price reduction effect can appear quickly.

In a press release on the 13th, the association emphasized, "Domestic refiners have cooperated to ensure that consumers can feel the effect of the fuel tax reduction as quickly as possible by immediately lowering the sales and shipment volumes at company-operated gas stations and storage tanks on the day the government reduced the fuel tax by up to 37% in three phases from November last year to July this year."

Currently, under the Transportation, Energy, and Environment Tax Act, fuel tax is imposed when taxable goods are shipped from the manufacturing plant. It takes approximately 10 days for gasoline and diesel, to which the reduced fuel tax is applied, to be transported from the refinery through storage tanks to gas stations nationwide.

Despite having existing inventory supplied before the fuel tax reduction with higher tax rates at company-operated gas stations and storage tanks on the day of the tax cut, refiners sold and supplied fuel at the reduced tax price, bearing inventory losses.

Meanwhile, according to the Korea National Oil Corporation's price information site Opinet, the nationwide average gasoline price was 2,082.10 won and diesel was 2,124.27 won as of the previous day, down 62.8 won and 43.39 won respectively compared to the 30th of last month. It was confirmed that the fuel tax reduction amounts of 57 won for gasoline and 38 won for diesel were fully reflected within 12 days.

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