Seoul – South Korea has announced an extension of its temporary fuel tax cut for another two months, until the end of April. This decision comes as the country grapples with rising inflation, driven in part by higher global oil prices and increased costs for some agricultural products.   

The fuel tax reduction, which has been in place since 2021, will continue to lower the price of gasoline by 15% and diesel and liquefied petroleum gas (LPG) by 23%. This translates to a decrease of about 122 won per liter for gasoline and 133 won per liter for diesel.

In addition to the fuel tax extension, the government is taking further steps to alleviate the burden of high food prices on consumers. It will inject an additional 30 billion won ($22.5 million USD) into subsidies for agricultural and fisheries products. This will support discounts of up to 40% on items like cabbage, radish, and various seafood.

The government is also accelerating the import of fruits and vegetables under lower tariff rates. This aims to increase supply and stabilize prices for these essential items.

"We will continue to closely monitor the economic situation and take necessary measures to stabilize prices and support the livelihoods of our citizens," said Choi Sang-mok, Deputy Prime Minister and Minister of Strategy and Finance.   

These measures follow a recent uptick in South Korea's consumer price index, which rose by 2% in January after remaining below that level for several months. The government hopes that the extension of the fuel tax cut and the additional support for food prices will help to ease inflationary pressures and lessen the financial strain on households.

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