South Korea to implement smaller fuel tax cuts from November

SEOUL :South Korea has decided to extend subsidy measures for oil products by two more months until the end of December, but with lower rates of tax cuts, the finance ministry said on Wednesday.

From November, the rate of tax cuts for gasoline will be adjusted to 7 per cent from 10 per cent and those for diesel and liquefied petroleum gas butane to 10 per cent from 15 per cent, the ministry said.

The ministry said the decision reflected recent trends in oil prices and inflation, as well as the impact on public finances. South Korea started to offer temporary oil tax breaks in November 2021, extending them several times with modifications.