Fuel Tax Reduction Measures Extended Until Year-End... Choo Kyung-ho Actively Considering 2-Month Extension

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho announced that he will actively consider extending the fuel tax reduction measure until the end of the year.

On the 5th, Deputy Prime Minister Choo held a press conference at the Government Complex Sejong and said, "When the deadline for the fuel tax reduction measure arrived in August, international oil prices began to rise, so we extended it until the end of October," adding, "If the strong international oil prices do not subside, we think we should actively consider extending the measure for about two more months." Deputy Prime Minister Choo had also stated at the price and livelihood inspection meeting held on the 15th of last month that the decision on extension would be made depending on oil price trends.

The government must decide whether to extend the fuel tax reduction measure by mid-month. Currently, the fuel tax rate reduction of 25% for gasoline and 37% for diesel and liquefied petroleum gas (LPG) butane is applied until the end of this month. Gasoline has been reduced since January this year, and diesel and LPG butane have been reduced by 37% respectively. The current reduction rates for gasoline have been maintained since January this year, and for diesel and LPG since July last year.

Due to production cuts decided by major oil-producing countries, international oil prices, which were around $60 to $70 per barrel from May to mid-July, surged past $80 per barrel from the end of July. According to the New York Mercantile Exchange and the UK ICE Futures Exchange, the price of West Texas Intermediate (WTI) crude oil reached as high as $93.68 per barrel on the 27th of last month. The Saudi Arabian government also issued an official statement saying it will continue production cuts until the end of the year, making further price increases a possibility that cannot be ruled out.

However, regarding the issue of electricity rate hikes related to rising oil prices, he said, "The rise in international energy prices, the financial situation of Korea Electric Power Corporation (KEPCO), and the burden on the public are important," adding, "We will make a final decision after comprehensive consideration."

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is answering questions at a press briefing held at the Ministry of Economy and Finance press room in the Government Complex Sejong on the 5th.

Regarding the outlook of a "lower in the first half, higher in the second half" pattern, Deputy Prime Minister Choo said, "In conclusion, this year's growth forecast is still valid," and expressed confidence that "exports are likely to be positive in October." He also said, "Even if it falls slightly short, it looks certain in November." Nevertheless, he mentioned that high interest rates, economic slowdowns in major countries, and recent international oil price increases remain uncertain factors.

Regarding the recent controversy over manipulation by the National Statistical Office, he said, "There was a first announcement by the Board of Audit and Inspection, and based on that, such a thing could not have happened," adding, "Statistics must always be produced objectively and fairly, and the parts that are released should be transparent. It is unthinkable. Regardless of any instructions from superiors, the staff must uphold their principles and protect the integrity of their work, which is fundamental."

Deputy Prime Minister Choo also responded to criticism about the rapid pace of household debt by saying, "We are responding consistently with the direction that it must be managed stably." He added, "Household debt has increased at the fastest and steepest pace over the past five years," and stated, "We will not operate household debt recklessly nor use it as a policy to stimulate the economy."

Regarding his future position, he was reserved, saying, "Just as I did not come in at my own will, I will not leave at my own will."

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